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Amberle subsidy benefit

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Amberle subsidy benefit

  • This topic has 2 replies, 2 voices, and was last updated 4 years ago by student0001.
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    Posts
  • August 12, 2020 at 9:42 pm #580314
    student0001
    Member
    • Topics: 13
    • Replies: 24
    • ☆

    Dear Sir

    For the Amberle case, why is the subsidy benefit calculated as:
    $80m x (0.08 – 0.031) x 70% x 3.312?

    What is the reason for multiplying by 70%?

    thanks

    August 13, 2020 at 8:22 am #580345
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    In future you must ask in the Ask the Tutor Forum if you want me to answer. This forum is for students to help each other.

    The 70% is to account for the tax of 30%.

    August 13, 2020 at 8:52 am #580352
    student0001
    Member
    • Topics: 13
    • Replies: 24
    • ☆

    Understood. Thank you Sir.

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