Which of the following Debt Coverage Ratios (DCR) would provide the greatest negative gearing in a property investment'

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Which of the following Debt Coverage Ratios (DCR) would provide the greatest negative gearing in a property investment'
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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 ratio states net operating income as a multiple of debt obligations due within one year, including interest, principal, sinking fund and lease payments.

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