Property Management
The net operating income of an Indiana property is $60,000. If the debt service (mortgage payments) total $45,000 annually, the debt coverage ratio (DCR) is:
A0.75
B1.00
C1.33✓ Correct
D2.00
Explanation
DCR = NOI ÷ Debt Service = $60,000 ÷ $45,000 = 1.33. A DCR above 1.0 means the property generates enough income to cover its debt obligations.
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