When businesses have grown to a size that the ‘rule of thumb’ approach is no longer appropriate, then some form of market-based pricing methodology must be used. The principle here is to find some standard variable within companies which appear to be consistently priced by the capital market. As expected, there are a large numberContinue reading “Business Valuation 103 – RELATIVE VALUATION MODELS”
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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”
MURABAHA – Cost plus Financing
Murabaha is currently the most widely used Islamic sharia compliant mode of finance, used by Islamic sharia-compliant financial institutions: it is as simple as buy an asset for the customer; sell the asset at a premium (profit), allow payment of the sale price in instalments to the customer. That is a Murabaha. A Murabaha isContinue reading “MURABAHA – Cost plus Financing”
What is MUSHARAKA?
Definition and classification of Musharaka The literary meaning of Musharaka is “sharing”. The root of the term “Musharaka” in Arabic comes from the word “Shirka”, which means ‘being a partner’. Under Islamic jurisprudence, Musharaka means; “a joint enterprise formed for conducting some business in which all partners share the profit according to a specific ratioContinue reading “What is MUSHARAKA?”
Be winners in the new economy, the Digital Economy by mastering Digital and Cryptocurrencies.
Bitcoin was the first Cryptocurrency, and today it is the most valuable as listed in the crypto or digital currency exchanges like Coinbase https://www.coinbase.com/. This trend to create global currencies, which are tradeable globally is driven by advances in secure ICT technology called Blockchain. To learn more about these development ME School of Finance, AccountingContinue reading “Be winners in the new economy, the Digital Economy by mastering Digital and Cryptocurrencies.”
Business Valuation 101
Business valuation is the process of determining the monetary value of a business or a company. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership value, Joint venture valuation, merger and acquisition value, determining inheritance tax liability and divorce proceedings Business Valuation is an inexact science atContinue reading “Business Valuation 101”
Digital Mindset 2020
DIMINISHING MUSHARAKAH
A form of Musharakah, developed in the near past, is the ‘Diminishing Musharakah.’ According to this concept, a financier and his client participate either in the joint ownership of property or equipment or in a joint commercial enterprise. The share of the financier is further divided into several units. It is understood that the clientContinue reading “DIMINISHING MUSHARAKAH”
Mohamed Ebrahim Research Links
From the Desk of Mohamed Ebrahim Earn and Learn Cryptocurrencies
Bitcoin was the first Cryptocurrency, and today it is the most valuable as listed in the crypto or digital currency exchanges like Coinbase https://www.coinbase.com/. This trend to create global currencies, which are tradeable globally is driven by advances in secure ICT technology called Blockchain. To learn more about these development ME School of Finance, AccountingContinue reading “From the Desk of Mohamed Ebrahim Earn and Learn Cryptocurrencies”
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