Question

Annual debt service divided by the original loan principal determines Question 20 options: 1) The operating...

Annual debt service divided by the original loan principal determines Question 20 options:

1) The operating expense ratio.

2) The debt coverage.

3) The break even ratio.

4) The mortgage constant.

Question 21 (2 points)

A taxable loss implies a negative before tax cash flow to the investor.

options: 1) True 2) False

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Answer #1

Ans. 4) The mortgage constant.

Annual debt service divided by the original loan principal determines the mortgage constant. It is also known as loan constant or just constant.

Ans 21) FALSE

A taxablel loss is the net loss before tax due to excess of expenditure over income.

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