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APV

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › APV

  • This topic has 2 replies, 3 voices, and was last updated 11 years ago by AvatarJohn Moffat.
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  • November 30, 2014 at 10:28 pm #214917
    Avatarjess
    Member
    • Topics: 36
    • Replies: 19
    • ☆☆

    if government provide subsidy loan, what rate should be used to discount tax relief on subsidy loan and the benefit of lower interest rate? risk free rate or cost of debt or interest of subsidy loan?

    December 1, 2014 at 12:20 am #214931
    Avataricedawn
    Member
    • Topics: 32
    • Replies: 176
    • ☆☆☆

    Risk free rate or cost of debt. Both are acceptable i think

    December 1, 2014 at 8:58 am #214999
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54851
    • ☆☆☆☆☆

    Yes – there are arguments for both, and in the exam either is acceptable.

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