Archive Webinar Package 2017-107: Best Practices: Business Valuation Methods – The Cost of Capital
**Webinar 107: Live Broadcast Date: April 26, 2017**
VPS StraightTalk Webinar Series: Business Valuation Methods – The Cost of Capital Method with Jim Hitchner, CPA/ABV/CFF, ASA
Learn the Best Practices of the Business Valuation Methods in this VPS StraightTalk webinar series
The highlight of this session will be a new case study that shows the various ways to calculate the cost of equity capital using the new Duff & Phelps 2016 Valuation Handbook. You will learn how to determine, support, and present on the cost of equity capital. Hitchner will also go through a detailed discussion of the weighted average cost of capital.
Best Practices – Cost of Capital will cover
- New case study — Detailed calculations of various equity return results
- Duff & Phelps (D&P) cost of capital components and choices
- Detailed examples of numerous applications
- D&P CRSP
- D&P risk premium study
- Build-up model
- Modified capital asset pricing model
- Dealing with differences
- Measurement time periods
- Equity risk premiums (ERPs)
- Conditional vs. unconditional ERPs
- Adjusted vs. unadjusted ERPs
- Historical vs. supply-side ERPs
- Size premiums, including deciles 10, 10b, and 10z
- Industry risk premiums
- Specific company risk
- Risk indicators
- Risk-free rate — adjust or not?
- Damodaran’s views on ERPs, size premiums, and company-specific risk
- How to reconcile the results when different
How to defend your results
Easy sanity check on cost of capital
D&P recommended ERP
- Selecting weights in the WACC
- Tax rates in the WACC
- Control vs. minority in the WACC
Using a detailed case study (including report language), the participant will learn:
- How to apply best practices in the cost of equity capital
- How to apply best practices in the weighted average cost of capital
- How to defend your calculations
Information on CPE credits, refund policies, and complaint resolution can be found at www.valuationproducts.com/cpe.html.
This downloadable archived webinar package is an interactive video of the webinar with the original webinar handouts.
The format of the archived webinar package is an Adobe Presenter PDF file that allows you to view the video of the webinar with the synced audio so that you see the presentation just as it was presented “live.” The Presenter format also allows for easy navigation through the webinar so you can quickly go to a specific section in the presentation. The handout materials are included in the file. To view the Webinar Presenter file, you must have the current version of Adobe Reader. You can download the free Adobe Reader at http://get.adobe.com/reader Please save the file to your hard drive or server. This is a very large file so please allow sufficient time for the download to complete.
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