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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: $140,000; debt service
Given the following information, calculate the debt coverage ratio of this commercial loan: estimated net operating income (NOI) in the first year: $140,000; debt service in the first year: $105,000; loan amount: $1,000,000; purchase price: $1,300,000.
A) 1.33
B) 0.67
C) 1.30
D) 1.50
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