Joan and John purchase a building that generates a stabilized NOI of $900,000 and has a capitalization rate of 8%. It has been financed with a mortgage loan of $6,750,000 with a 5year term, a 25 -year amortization and an interest rate of 6%. a) Calculate the Loan to Value (LTV) Answer: b) Calculate the Debt Service Coverage (DSCR). Answer: c) Calculate the loan balance at the end of one year. d) If they sell the building at the end of the year for $12,000,000 what is their Return on Equity (ROE)