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Hello,
I am doing the Ennea Co (Question number 32 BPP)
I am struggling to calculate the interest of £1.28m. Could anyone help me please ?
I tired many different ways and I always calculate 1.25mThank you in advance
The interest payable on the new borrowing (after the tax saving at 20%) is 6.25% x $20M x 80% = 1,000,000.
The extra interest on the existing borrowing (after tax saving) is 0.25% x 140M x 80% = 280,000
So the total extra interest (above what they are currently paying) is 1,280,000.
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