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The Debt Coverage Ratio Is Used to Indicate How Much

Question 36

Multiple Choice

The debt coverage ratio is used to indicate how much the NOI can decline before it will not cover the debt service on the property. While DCRs can vary based on competition within a particular market, lenders usually seek a minimum DCR of:


A) 0.80
B) 1.00
C) 1.20
D) 1.40

Correct Answer:

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