A company wants to borrow $400 , 000 . The monthly payment obligation is $2 , 700 . They have $3 , 000 available to service the debt. The collateral is worth $500 , 000 . Will the bank make the loan? No, because the loan to value ratio is > 0.8 Yes, because the loan to value ratio is 0.8 yes, because the debt service coverage ratio is > 1.20 No, becsuse the debt service coverage ratio is < 1.20.