Answer:
1.50
Explanation:
The debt coverage ratio shows the extent to which the property is generating income in a bid to pay its debt service charge, it is computed using the below DSCR formula
DSCR= net operating income (NOI)/Debt service
net operating income (NOI)=$150,000
Debt service=interest expense or finance charge in the year=$100,000
DSCR=$150,000/$100,000
DSCR=1.50
The property in question is generating income that is 1.5 times its debt servce yearly
B.
b. Because some are getting more money, while others still get low income. Which means it is unequal.
Hope it helped!
Answer:
Option A is correct
Explanation:
Companies often use net book value or gross cost of the asset because<u> It is consistent with how assets are reported on the balance sheet</u>