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Respected Sir,
I wanted to confirm few values used in calculation of annual tax relief ,
(14488*80%*0.055*25%) + (14488*20%*0.075*25%)
How do we get 0.055 and 0.075 in the above equation
Plus what is 0.02 used in subidy benefit caculation ..The return on government debt is 4.5%.
Their current borrowing rate is 300 basis points above government debt, so it 7.5% (or 0.075).
The subsidy rate is 200 basis points below their current borrowing rate, so is 5.5% (or 0.055).
The benefit of the subsidy is 2% (or 0.02)
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