What is the debt service coverage ratio for the deal


Problem

Vornado took an interest-only mortgage with 60% LTV and 10% interest rate to buy an office building for $10,000,000. The building generates $800,000 of rental income per year and requires a $50,000 in operating costs. What is the Debt Service Coverage Ratio for this deal?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the debt service coverage ratio for the deal
Reference No:- TGS03280057

Expected delivery within 24 Hours