After the third year of operations, a firm has an annual NOI of $575,000 with outstanding debt of: 6.6%, 10-year loan of $3,000,000 paid quarterly 5.0%, 15-year loan of $2,500,000 paid monthly. What is this year debt coverage ratio?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 12P: The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of...
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After the third year of operations,
a firm has an annual NOI of
$575,000 with outstanding debt
of: 6.6%, 10-year loan of
$3,000,000 paid quarterly 5.0%,
15-year loan of $2,500,000 paid
monthly. What is this year debt
coverage ratio?
1.51
1.86
1.82
1.24
Transcribed Image Text:After the third year of operations, a firm has an annual NOI of $575,000 with outstanding debt of: 6.6%, 10-year loan of $3,000,000 paid quarterly 5.0%, 15-year loan of $2,500,000 paid monthly. What is this year debt coverage ratio? 1.51 1.86 1.82 1.24
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