The aims of this paper are first, to review the background to the harmonization of VAT rates within the European Union and second, to model the financial impact of the risks surrounding structural changes in VAT rates. The underlying sales upon which VAT is based is modelled by a geometric...

Although many studies have been undertaken on the cost of capital, insufficient attention has been paid to the factors that drive the cost of capital in the emerging markets, in particular the Middle East region. Here, an analysis is undertaken of the cost of capital in Egypt, based on a sample...

This paper values a hostile government's option to expropriate a multinational's assets, using stochastic calculus. We assume that the exchange rate follows a geometric Brownian motion process and expropriation events are Poisson distributed through time.

This paper models the value of "embedded" options in foreign bonds, using stochastic calculus, by assuming that the exchange rate follows a geometric Brownian motion process and the arrival time of an early redemption of the bond by the issuer conforms to a negative exponential distribution. The...