Given the Following Information, Calculate the Debt Yield Ratio on the Following

question 25

Multiple Choice

Given the following information, calculate the debt yield ratio on the following commercial property. Estimated Net Operating Income in the first year: $2,500,000, Debt service in the first year: $960,000, Loan amount: $20,000,000, Purchase price: $27,300,000

• A) 4.8%
• B) 12.5%
• C) 68.6 %
• D) 75.2 %

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