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August 4, 2022 at 9:51 pm
Thank you Sir for great lecture, I was reading it in Study Text but I got impression it’s difficult to remember. Now, after watching the lecture all makes sense. Thanks to your lectures I have already scored 82 in PM, now I hope to pass FM 🙂
John Moffat says
August 4, 2022 at 9:54 pm
Thank you for your comment, and congratulations on passing Paper PM with such a good mark 🙂
May 23, 2022 at 4:07 pm
Hi Sir, when do we use the post tax cost of borrowing instead of pre tax?
May 23, 2022 at 8:04 pm
We always use the post-tax cost of borrowing when calculating the WACC for the purpose of appraising projects.
(The pre-tax cost is really the rate of return demanded by investors and that is relevant when calculating the market value of debt borrowing.)
May 3, 2022 at 10:55 am
Hi Sir, if so happens there is no scrap value, will there be a balancing charge/allowance? Or do we just count the final year as tax allowable depreciation?
May 4, 2022 at 8:19 am
The rule does not change, which means that there will be a balancing allowance in the final year of the amount of the tax written down value.
April 28, 2022 at 7:13 am
Hi Sir, wouldn’t it make more sense to take cash flow minus depreciation and get the taxable profit then charge tax on that?
April 28, 2022 at 8:50 am
By all means do that if you want, but it then means either showing the tax calculation as separate workings or remembering to add back the depreciation after calculating the tax because the depreciation is not a cash flow.
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