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Needs typed answers Consider a property with a first-year expected NOl of $450,000 that can be purchased for $5.6 million. Financing is available with a

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Consider a property with a first-year expected NOl of $450,000 that can be purchased for $5.6 million. Financing is available with a 10-year balloon loan amortized over 20 years at 7 percent interest. The lenders maximum loan-to-value (LTV) ratio is 75 percent and its minimum debt-coverage ratio (DCR) is 1.3. a) Based on the debt-coverage ratio, what is the largest loan this lender will provide on this property? b) What is the largest loan available based on the LTV ratio? c) Taking both of these restrictions into account, what is the most the lender will loan on this property? d) Based on this loan amount, what is the DCR of this loan? e) Does this investment exhibit positive, negative or neutral financial leverage? How do you know? What does this imply about this investment

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