What will be the property debt coverage ratio

Reference no: EM13279044

Assume a retail shopping center can be purchased for $6 million. The center's first year NOI is expected to be $519,000. A $4,300,000 loan has been requested. The loan carries an 8 percent fixed contract rate, amortized monthly over 25 years with a 10-year term. What will be the property's (annual) debt coverage ratio in the first year of operations? Please show all steps of the calculation.

Reference no: EM13279044

Questions Cloud

Explain the equilibrium constant for the reaction : Stearic acid, nature's most common fatty acid, dimerizes when dissolved in hexane. The equilibrium constant for this reaction at 28 degrees Celsius is 2,900.

Distribution and indirect channels of distribution : As part of the Marketing Mix, Place, or Channels of Distribution, is important to understand. What is the difference between Direct channels of distribution and Indirect channels of distribution? It has been said that "channels of distribution may be..

Would an investor with a required after-tax rate of return : Would an investor with a required after-tax rate of return of 15 percent be wise to invest at the current price?

Explain what are the operator error specs of devices : When working with laboratory equipment such as Digital multimeter, Thermocouple, and data acquisition unit what are the operator error specs of devices, polynomial correction

What will be the property debt coverage ratio : The loan carries an 8 percent fixed contract rate, amortized monthly over 25 years with a 10-year term. What will be the property's (annual) debt coverage ratio in the first year of operations? Please show all steps of the calculation.

Exploratory data analysis : Exploratory Data Analysis.

Does henry have against james : Jones testified that Henry had performed the work improperly and that it would cost approximately $16,000 to correct the deficiencies in the work performed for James. If James refuses to pay any amount to Henry what recourse, if any, does Henry ha..

How were marketing and non-marketing personnel briefed : What communication and team building strategies were used to ensure the personnel responsible for each element of the marketing mix work together to achieve the marketing objective

What is your definition of pop culture : What is your definition of pop culture? What is your definition of pop music? Do you believe pop culture and/or pop music influenced 20th Century Classical Music? If so, how? If not, why not?

User Account

All Pages