Cost of Capital: Bridging Theory and Practice in a Changing Economy
Macroeconomic shifts, policy uncertainty, and market volatility are reshaping valuation inputs. This webcast examines how current economic conditions influence cost of capital components beyond formulaic models.
Format
Webcast
Date
Jan 21, 2026
NASBA Field of Study
Economics
Level
Basic
CPE Credits
1.5
Instructor
Victor Esteban Jarosiewicz
Availability
3 months
Product Number
WC5185474
Rethinking cost of capital assumptions: Applying judgment beyond templates and software
Valuation professionals increasingly rely on standardized models and data platforms to estimate cost of capital.
Although these tools are essential, they tend to make practitioners spend less time thinking about the economic meaning behind key inputs — even during periods of heightened uncertainty.
This webcast reexamines cost of capital through a macroeconomic lens, focusing on how policy changes (including tariffs and recent tax legislation), monetary conditions, market volatility, and investor risk aversion influence valuation assumptions amid heightened global uncertainty, global conflicts, and political uncertainty.
Bridging theory and practice in valuation work
Rather than revisiting formulas, the session emphasizes how to interpret and adjust inputs in light of current economic signals, geopolitical risk, and shifting investor sentiment.
Drawing on academic research and market evidence, the presentation connects foundational finance and accounting theory with real-world valuation judgment.
Attendees will gain insight into how macroeconomic trends translate into changes in risk-free rates, equity risk premiums, and overall discount rates.
Key Topics
- Macroeconomic influences on cost of capital components
- Risk-free rates, risk premiums, and investor risk aversion
- Interpreting market volatility and economic signals
- Defending cost of capital assumptions in valuation reports
Learning Outcomes
- Recognize how current macroeconomic conditions affect cost of capital inputs.
- Identify key economic and market signals relevant to discount rate assumptions.
- Distinguish between mechanical model outputs and judgment-driven adjustments.
- Estimate how investor risk aversion and market volatility influence risk premiums.
Who Will Benefit
Business professionals who want to strengthen judgment, improve defensibility of valuation assumptions, and better interpret macroeconomic conditions affecting cost of capital
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