Which of the following Debt Coverage Ratios (DCR) would provide the greatest negative gearing in a property investment? a. 1.2 b. 1.1 c. 0.9 d. 1 e. 0.8
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Solution 1
The Debt Coverage Ratio (DCR) is a measure of the cash flow available to pay current debt obligations. The lower the DCR, the less cash flow is available to cover debt service. Negative gearing occurs when the cost of owning a property outweighs the income it generates.
In this case, the DCR that w Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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