APVForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › APVThis topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts May 12, 2018 at 3:17 pm #451494 IsabelleMemberTopics: 17Replies: 22☆Hi,I’m trying to get my head around APV and had a quick question about the financing impact.I understand that the 3 components in P4 I need to be aware of are: 1. Issue costs 2. Tax relief 3. Subsidy loan costsI don’t understand why the interest cost itself isn’t a factor to be calculated rather than the tax relief. Am I missing something? May 13, 2018 at 7:33 am #451573 John MoffatKeymasterTopics: 57Replies: 54478☆☆☆☆☆The tax relief is the tax saving on the interest. According to M&M it is the tax saving on the interest that makes debt finance attractive.Have you watched my free lectures on this?AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘APV’ is closed to new replies.