Given the following information, calculate the debt yield ratio on the following commercial property. Estimated Net Operating Income in the first year: $2,500,000, Debt service in the first year: $960,000, Loan amount: $20,000,000, Purchase price: $27,300,000

Question

Quizplus · Accepted Answer

The debt yield ratio is calculated by dividing the Net Operating Income (NOI) by the loan amount. So, $2,500,000 / $20,000,000 = 0.125 or 12.5%.

Given the Following Information, Calculate the Debt Yield Ratio on the Following