Over the last decade the Government implemented huge infrastructure projects to spur economic growth and financial stability. This was largely supposed to ease the tax burden on Kenyans who are already paying huge taxes compared to the other growing nations worldwide, in return for very limited benefits. Fund developments, re-opening of factories, foreign amnesty, UniversalContinue reading “MINIMUM TAX by CPA Bilal Musani, ACCA”

Business Valuation 105 – Contingent Methods of Valuation

The Black and Scholes option pricing theory (OPT) offers a clue as to how the equity in a firm may be valued. Suppose we recognise the fact, that an equity investor in a geared firm with limited liability has a call option on the underlying assets of the firm. In that case, we have, potentially, a method for valuing the business.   Conceptually thisContinue reading “Business Valuation 105 – Contingent Methods of Valuation”