Finance Formulas / July 11, 2018 / Heaven Estes
Cross Price Elasticity of Demand (XED) is the responsiveness of demand for one good to the change in the price of another good. It is the ratio of the percentage change in quantity demanded of good x to the change in the price of Good Y. In business, Cross Elasticity of Demand is important because it will help determine whether or not it is a good move to increase or decrease prices or to substitute one product for another for revenue.
The Debt Service Coverage Ratio, usually abbreviated as DSCR or just DCR, is an important concept in real estate finance and commercial lending. It’s critical when underwriting commercial real estate and business loans, as well as tenant financials, and is a key part of determining the maximum loan amount. In this article we’ll take a deep dive into the debt service coverage ratio and walk through several examples along the way.
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