DEBT COVERAGE RATIO Definition

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DEBT COVERAGE RATIO is the ratio between the net income of an investment and the amount of debt service of the investment: expressed as (NOI / DS = DCR), i.e. it is the relationship of net operating income divided by annual debt service.

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CURRENT COST is the cost which would be incurred for replacement of an asset.

BILLINGS IN EXCESS OF COSTS see COST IN EXCESS OF BILLINGS.

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