Exam 1 Formulas Flashcards
1
Q
How to calculate Debt Service Coverage Ratio?
A
NOI/Annual Debt Service
2
Q
How to calculate the loan to value ratio?
A
Loan Amount/Cap Rate
3
Q
How to calculate the Return on Equity?
A
Cash Flow Before Taxes/Total Equity Invested
4
Q
How to Calculate Return on Cost?
A
Net Operating Income/ Loan Amount
5
Q
How to Calculate the Breakeven Ratio
A
(Operating Expenses + Annual Debt Service)/Gross Operating Income
6
Q
How to calculate loan to cost?
A
Loan Amount/Total Development Budget