APV

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October 23, 2021 at 10:51 pm #638941
humai
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Hello

Sir, while calculating APV , in financing cashflows we take,
PV of tax savings from interest payments
PV of after tax subsidized loan benefit
Issue cost of debt or equity. Right?

But do we also consider PV of tax savings from issue cost or not?
October 24, 2021 at 2:37 pm #638990
John Moffat
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Yes, but only if they are tax allowable. Normally the questions on APV specifically say that they are not tax allowable.
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