The Debt Coverage Ratio Is Used to Indicate How Much

question 36

Multiple Choice

The debt coverage ratio is used to indicate how much the NOI can decline before it will not cover the debt service on the property. While DCRs can vary based on competition within a particular market, lenders usually seek a minimum DCR of:

• A) 0.80
• B) 1.00
• C) 1.20
• D) 1.40

Understand the role and preparation of references in job applications.

Understand the definition, characteristics, and duration of partnerships.

Grasp the financial closing process in partnerships including the treatment of withdrawals and capital accounts.

Comprehend how partners in a partnership are taxed.

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Definitions:

Apparent Power

The total power in an AC circuit, represented as the product of the circuit's voltage and current, without taking phase difference into account.

Wye-Connected

A method of connecting electrical components where three components are connected at a single point, resembling the letter Y, to balance the load.

Phase Voltages

The voltages that exist between each phase and neutral in a polyphase system, such as those found in three-phase electrical systems.

Inductors

Components in an electrical circuit designed to add inductance, typically consisting of a coil of conducting wire.