Question
The acquisition price of a property is $380,000. The loan amount is $285,000. If the propertys NOI is expected to be $22,560, operating expenses $12,250,
The acquisition price of a property is $380,000. The loan amount is $285,000. If the propertys NOI is expected to be $22,560, operating expenses $12,250, and the annual debt service $19,987, the debt coverage ratio (DCR) is approximately equal to:
a. 0.89.
b. 1.13.
c. 1.84.
d. 1.74.
e. None of the above.
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
