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Darren, a real estate professional, is representing a client who wants to purchase an industrial warehouse. The client will need to obtain a mortgage to finance part of the purchase and can afford an annual payment of $80,000. Darren projects the current annual net operating income for the property will be approximately $120,000. As part of his analysis, Darren will need to determine the debt coverage ratio. What is the debt coverage ratio? A) 0.5 B) 1 C) 1.5 D) 2 Darren, a real estate professional, is representing a client who wants to purchase an industrial warehouse. The client will need to obtain a mortgage to finance part of the purchase and can afford an annual payment of $80,000. Darren projects the current annual net operating income for the property will be approximately $120,000. As part of his analysis, Darren will need to determine the debt coverage ratio. What is the debt coverage ratio? A) 0.5 B) 1 C) 1.5 D) 2
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The debt coverage ratio DCR is calculated by dividing the propertys annual net opera... View the full answer
Related Book For
Taxes And Business Strategy A Planning Approach
ISBN: 9780132752671
5th Edition
Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
Posted Date:
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