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Debt Capacity

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Debt Capacity

  • This topic has 3 replies, 3 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 11, 2019 at 6:35 am #527096
    toushiga
    Participant
    • Topics: 424
    • Replies: 172
    • ☆☆☆☆

    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.

    August 11, 2019 at 10:19 am #527132
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54735
    • ☆☆☆☆☆

    The tax relief is calculated on the interest actually paid.

    November 13, 2019 at 2:51 pm #552441
    rimshy
    Member
    • Topics: 95
    • Replies: 91
    • ☆☆

    Sir can u please tell any past exam question related to debt capacity

    November 13, 2019 at 6:17 pm #552502
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54735
    • ☆☆☆☆☆

    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.

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