Hi sir
Tax shield calcualtion
How should we calculate the tax shield for the bank loan?
Bpp calculates as follows:
30 * .25
This does not seem right to me as they are multiplying the loan value by the tax rate....I thought it should be the interest on the loan multiplied by the tax rate?
Thanks in advance
Ask the Tutor ACCA AFM
Intergrand 12/02
You have asked this twice and I have just answered your other post :-)
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