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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Burung (6/14)
Dear Tutor,
I was trying to solve the question Burung. We are required to calculate APV. Could you please help me where in the scenario we can see that Burung is all equity financed?
Thank you.
It certainly isn’t all equity financed!!!
But the whole point of APV is that we calculate the NPV as though it were all equity financed and then add on the tax benefit associated with the debt in order to get the APV.
I do suggest that you watch my free lectures on this. APV is very commonly asked in the exam.
Thank you very much for your quick reply. I wil look at the lectures and review this topic again.
You are welcome 🙂