Cost of Capital – Basics and Best Practices in Business Valuation
The cost of capital plays an integral role in business valuation. This webcast gives an overview of common methodologies and the process practitioners use to determine required rates of return.
Format
Webcast
NASBA Field of Study
Specialized Knowledge
Level
Basic
CPE Credits
1.5
Instructor
David Harkins, Amanda C. Ricketti
Availability
3 months
Product Number
WC4480680
Navigating the cost of capital in business valuation
Business valuation practitioners aim to preempt challenges to their opinions, whether in court or from the IRS. To sidestep such scenarios, analysts must understand the inputs driving their valuations, including the cost of capital.
The cost of capital — the rate of return demanded by an investor for investing in a specific business — is a complex and indispensable component of business valuation.
Practitioners must understand:
- Various methods for calculating the cost of capital -The advantages and limitations of each approach
In this webinar, we'll cover:
- Key components involved in calculating the cost of capital
- An overview of common data sources utilized
- Insights into how practitioners from reputable valuation firms determine the cost of capital, particularly for privately owned operating companies
Key Topics
- Calculating the cost of capital for privately owned companies
- Cost of capital components
- Common sources of information
Learning Outcomes
- Identify common components when building up a discount rate.
- Distinguish between the common providers of key input data.
- Recognize common methodologies utilized to calculate the cost of capital.
Who Will Benefit
Early career Business Valuation Analysts who want to understand how practitioners determine the cost of capital and validate their assumptions.
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