Finance
An Alaska commercial lender considers 'loan-to-value' and 'debt service coverage ratio' (DSCR) as primary underwriting criteria. A property with an NOI of $100,000 and annual debt service of $75,000 has a DSCR of:
A0.75
B1.00
C1.33✓ Correct
D1.75
Explanation
DSCR = NOI ÷ Annual Debt Service = $100,000 ÷ $75,000 = 1.333, or approximately 1.
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