Given the following information, calculate the debt coverage ratio of this commercial loan. Estimated net operating income (NOI) in the first year: $150,000, Debt service in the first year: $100,000, Loan amount: $1,000,000, Purchase price: $1,300,000

Question

Given the following information, calculate the debt coverage ratio of this commercial loan. 	Estimated net operating income (NOI) in the first year: $150,000, Debt service in the first year: $100,000, Loan amount: $1,000,000, Purchase price: $1,300,000

Quizplus · Accepted Answer

The debt coverage ratio (DCR) is calculated by dividing the net operating income (NOI) by the debt service. In this case, it's $150,000 / $100,000 = 1.50.

Given the Following Information, Calculate the Debt Coverage Ratio of This