- This topic has 3 replies, 2 voices, and was last updated 1 year ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
In SD21, question on Zhichi Co
To calculate Subsidize loan benefit, the examiner’s answer is : 80*(4.8%-1.8%)
I understand that since interest rate of subsidize loan is 180 points lower than risk free rate 4.8%, Subsidize loan benefit should be: 80*1.8%
Please help me explain why.
Thank you.They are actually paying interest of 4.8 – 1.8 = 3%.
The normal cost of borrowing for the company is 6% and therefore the benefit of the subsidised loan in 6 – 3 = 3%.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Subsidise loan benefit SD21 Zhichi’ is closed to new replies.