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Given the following information, calculate the debt coverage ratio of this commercial loan: estimated net operating income (NOI) in the first year: $125,000; debt service
Given the following information, calculate the debt coverage ratio of this commercial loan: estimated net operating income (NOI) in the first year: $125,000; debt service in the first year: $80,000; loan amount: $600,000; purchase price: $850,000.
A) 0.156
B) 0.67
C) 1.56
D) 1.10
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