You own a property and need to calculate the debt coverage ratio to make sure you comply with lender reporting requirements. The property's NOI is $25,000. You acquired the property for $457,000. The loan included a down payment of 30% and a mortgage constant of 0.06442.

QUESTION: What is your debt coverage ratio (DCR)?

Enter your answer with 2 decimal points. For example, if you calculated 1.5427, you would enter 1.54 instead of rounding down to 1.5.

In the space below, show (1) the formula for the DCR and (2) how you calculated the DCR

What distinguishes capital expenditures from operating expenses? Be specific and give examples of both.

What is the basic shortcoming of most ratios and rules of thumb used in commercial real estate investment decisions as compared to a discounted cash flow model?