Cost of Capital Determinations for Business Appraisal

Course Details

Date

Friday, September 4, 2020

7:00am – 8:00am

Field of Study

Specialized Knowledge

Course Number

CC0158

CPE Credit

1 hour CPE credit

Level of Knowledge

Intermediate

Vendor

CPA Crossings

Prerequisites

Basic cost of capital knowledge

Description

This course focuses on the fundamental concepts for determining discount and capitalization rates for use in business and intellectual property appraisal assignments. The recently released and enhanced Cost of Capital Professional platform produced by Business Valuation Resources will be used to provide a hands-on demonstration of how to build and support a reliable discount rate for use in valuing closely held business and intellectual property.

This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

Participants receive a solid overview of the fundamental concepts underlying cost of capital in the context of a closely held business with particular focus on the use of a build-up model. Where the data comes from will be a key focus, as will the areas the require subjective judgement with respect to supporting growth rates and unsystematic risk elements.

Objectives

After attending this presentation you will be able to...

  • Recognize the difference between a discount rate and a capitalization rate and how to articulate this difference to clients and triers of facts
  • Explore sources of information used in each component of the traditional build-up model used to develop reliable and supportable discount rates.
  • Recognize the difference between a direct to equity method using a cap or discount rate versus the use of a weighted cost of capital model to value overall invested capital of an enterprise and why and when to use the two approaches.

Designed For

Professional practitioners who are involved in business and intellectual property appraisal and economic damage assessments

Course Pricing

Member Fee

Applicable if you are a HSCPA member in good standing.

$49.00
Non-Member Fee

Applicable if you are not a HSCPA member.

$64.00
Your Price $64.00

CPE Choice

Learn more about CPE Choice.
This course does not qualify for CPE Choice.

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