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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Debt Capacity
Sir,
for APV calculation, if the question has subsidised int rate (4%) and own borrowing rate (10%) for total debt capacity of $10m which the $6m is borrowed, the PV of tax relief for total $10m is based on 10% or 4%?
Thank you.
The tax relief is calculated on the interest actually paid.
Sir can u please tell any past exam question related to debt capacity
I really do not have the time to look through all of the past exam questions – sorry!
However it is mentioned is several questions, and I do of course mention the relevance of it in my free lectures.
