Cost of Capital in Business Appraisal in a Post COVID-19 Era

The inputs to developing reliable cost of capital estimates have become ever more complex and the risk of making errors has increased greatly. This...

12/7/2022 8:00am - 9:00am  |  Online  |  CPA Crossings

$49.00

CPE Categories: Specialized Knowledge & Applications (1 CPE)

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Description

The inputs to developing reliable cost of capital estimates have become ever more complex and the risk of making errors has increased greatly. This session explores a relatively new cost-effective resource now available from Business Valuation Resources, Cost of Capital Professional, which integrates data directly into the platform from multiple sources, including University of Chicago’s Center for Research in Security Prices (CRSP) data, Professor Aswath Damodaran’s data resources, Salvidio & Partners and the US Federal Reserve on Treasury bond yields. The philosophy behind the resource is to provide valuation practitioners with an independent, economical, and transparent platform that empowers users to make professional judgments while avoiding the illusion of precision from over-complicated mathematics. Cost of capital fundamental principles will be covered as will an overview of the Duff & Phelps Navigator as an alternative resource in developing discount rates for business appraisal purposes. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Presented by Coordinated Business Systems

Instructor: Ronald L Seigneur, CPA/ABV, ASA, CVA

Target Audience

CPAs and Business Advisors that utilize cost of capital in appraisal and business analysis

Course Objectives

After participating in this session you will be able to:

  • Explore the economic foundation for cost of capital determinations
  • Explain the illusion of precision from complicated mathematics
  • Identify how to retrieve cost of capital inputs relevant to the practitioner’s subject company
  • Explain how the Cost of Capital Professional can help valuation practitioners be more effective

Subjects

The major topics that will be covered in this class include:

  • An exploration of the Business Valuation Resources, Cost of Capital Professional resource
  • Explanation of the integration of data from multiple sources to the platform
  • Cost of capital fundamental principles will be covered
  • An overview of the Duff & Phelps Navigator