Day: February 22, 2021

QUESTION 1 “A tax practitioner must be seen to be independent of mind and appearance”. Elaborate on the above statement. “A tax practitioner must be seen to be independent of mind and appearance”. Independence of mind is a state that Read More …

QUESTION 1 Discuss four tax incentives that could “have contributed to the growth of financial markets in your country. Withholding tax on dividends of 5% is final. Flotation cost of securities is an allowable expense. Companies which issue a given Read More …

QUESTION 1 Assume that you are a senior tax assessor with the revenue authority of your country. You have been conducting back-duty investigations on a taxpayer and are now about to make your final recommendations on the action to be Read More …

QUESTION 1 Explain how savings and Credit cooperatives society (Sacco) are taxed The total taxable income of a cooperative society carrying on business as a credit and  savings cooperative society shall be deemed to be the aggregate of:- 50% of Read More …

ANSWER 1 Ways in which corporate social responsibility (CSR) activities might enhance the value of a firm: – CSR will help a company to build a positive reputation of its product and labour. This will give a firm a competitive Read More …

QUESTION 1 With reference to financial management in the global context, distinguish between the following terms: (i) A “Eurobond” and a “Euro note”. (ii) An option being “in the money” and “out of the money”. (i)Euro Bond and Euro-notes: A Read More …

QUESTION 1 (a) Explain how currently swaps could be used to hedge against the foreign exchange operating exposure of a firm. (a) The term swap is widely used to describe a foreign exchange agreement between two parties to exchange a Read More …

QUESTION 1 Analyze three factors that might be responsible for financial distress in a firm. Factors responsible for financial distress: – Poor Accounting/insufficient accounting practices A company can struggle even if it hits its sales goals because of its financial Read More …

ANSWER 1 (a)Reasons why acquisitions often fail to enhance shareholder’s value: • Hubris hypothesis – Errors in valuing a target firm. • Market irrationality – If a rational manager observes that their firm’s stocks are overvalued in the short run, Read More …

ANSWER 1 (a) Assumptions of the traditional theories of capital structure: – There are only two forms of long term capital namely equity and long term debt capital – There are no corporation and personal taxes. – The firm distributes Read More …