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A real estate investment company (REIC) requires a debt coverage ratio (DCR) of ...
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A real estate investment company (REIC) requires a debt coverage ratio (DCR) of 1.5 for all property assets and has access to an interest-only line of credit that costs 7% p.a. If a potential property investment has an NOI of $150,000 and costs $2 mil, what is the maximum permissible leverage ratio of the REIC for this property?
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