Cost of Capital Determinations for Business Appraisal

Tuesday, December 06, 2022
Webcast or Webinar, Online
2:00 PM - 3:00 PM (opens at 1:30 PM) EST
1Credits
Technical Business

Registration is Closed

Online registration for this course is now closed. Please contact the Member Service Center at (800) 342-3197 if you wish to inquire about registering.

Members
$49.00 Regular Price
Non-Members
$64.00 Regular Price
Course Type: Webcast
Course Code: 22/CX28334
Level: Intermediate
Vendor: CPA Crossings, LLC
Field of Study: Specialized Knowledge

Overview:

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.

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.

Major Topics:

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.

Major Topics:

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.

Designed For:

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

Prerequisties:

Basic cost of capital knowledge
CPE sponsors

The Florida Institute of Certified Public Accountants (FICPA) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org