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Ask the Tutor ACCA AFM

APV

Former userFormer user10y ago

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John MoffatJohn MoffatTutor10y ago#1
You can discount the tax shield on the debt at either the risk free rate, or the pre-tax cost of debt. In theory the two would be the same, but in practice they are not, and the examiner always accepts either (even though they obviously give different results).
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