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corporate tax in the cost of debt

Former userFormer user9y ago

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John MoffatJohn MoffatTutor9y ago#1
For the cost of debt we always take the after-tax interest - without exception. When determining the market value of debt the tax is irrelevant because it is investors who determine the market value, and they are not affected by company tax.
John MoffatJohn MoffatTutor9y ago#2
You are welcome, and a Merry Christmas and a Happy New Year to you also :-)
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