- This topic has 3 replies, 2 voices, and was last updated 6 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘BPP Revision kit Q 228 MCQ’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for September & December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › BPP Revision kit Q 228 MCQ
Why is tax not deducted in the calculation of the market value of the loan note?
As I stress in my lectures (because it is so common in the exam) it is investors who determine market values, and they are not affected by company tax.
Tax is only relevant when calculating the cost of debt to the company, because the company gets tax relief on the interest.
Please watch my free lectures. They are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.
Ok sir. Thank you 🙂
You are welcome 🙂