Professional Banker Diploma - Credit & Lending Practice Questions - Professional Banker Diploma - Credit & Lending (Chartered Banker Institute) Exam

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A commercial borrower presents annual Net Operating Income (NOI) of £500,000. Its total annual debt service requirements (principal repayments plus interest) equal £250,000. What is the borrower's Debt Service Coverage Ratio (DSCR)?

2.00x 0.50x 1.50x 2.50x

Correct Answer:

2.00x

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