BV542 Midyear Economic and Cost of Capital Update - Where Are We Now?
Includes a Live Web Event on 05/30/2024 at 1:00 PM (EDT)
Thursday, May 30, 2024
1:00pm-3:00pm Eastern Standard Time
- Access to virtual webinar via zoom will be accessible via education dashboard (login required)
- Electronic webinar handout(s)*
*Any webinar handouts will be made available to registrants the morning of the live event and made accessible via your education dashboard (login required). Once handouts have been posted for download, the class is no longer refundable.
Continuing Education (CE) Credit
This webinar will award 2.4 CE/CPE hour(s) for the live event.
If you are a designated member of ASA, CE credit will automatically be entered into your record after you participate in the live webinar and complete any required post-webinar components within the Course Wrap-up section.
NASBA and Continuing Professional Education (CPE) Credit
Policies: ASA's Refund and Cancellation Policy and ASA's Complaint Resolution Policy. ASA 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 the 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 www.learningmarket.org
CPE Credit: Up to (2.4) CPE credits
Program Level: Fundamental
NASBA Knowledge Type: Specialized Knowledge
Delivery Method: Virtual
Advanced Preparation: None
As we approach the middle of 2024, it is time to reassess where economic and financial market conditions are landing and their impact on valuations and cost of capital assumptions. After one of the fastest rate hiking cycles in history, the U.S. Federal Reserve is embarking on a path to normalize short-term policy rates. But expectations by some investors that long-term rates will revert back to the pre-Covid levels of 2019 may be misplaced. Valuations will have to contend with higher discount rates and potentially slowing economic growth in the foreseeable future. Join Carla Nunes and Jim Harrington as they help unpack these issues and provide updated data to help navigate the current times.
Methods include lecture, visual PPT presentation and polling questions.
Valuation (financial reporting, tax, litigation, fairness opinions) professionals, Corporate Development teams, Controllers, Financial Planning & Analysis (FP&A) teams, Investment Banking professionals, Private Equity professionals
1) Current Economic Conditions (e.g. real GDP growth, inflation, employment)
2) Projected Economic Growth
3) Risk-free rate Analysis - Where are central banks headed with their interest rate policies
4) Estimating Equity Risk Premium - Methods and Recommendations
5) Industry market performance and beta highlights
6) Cost of debt trends
Upon completion of this course, students will be able to:
- Identify the current U.S. economic and financial market conditions that may have an impact on valuations and cost of capital estimates;
- Evaluate the adjustments that may be needed to projected growth in cash flows (e.g., long-term growth rates);
- Describe the various methods available to estimate equity risk premium, and;
- Select and support cost of capital inputs in the current environment (e.g., cost of debt, risk-free rate, equity risk premium).
All course materials included with you registration are PDF Download Only items made available to students prior to the start of the class and are not for resale or distribution. All downloadable materials are accessible via your education dashboard (login required). Once eMaterials have been posted for download, the class is no longer refundable.
eMaterials are provided electronically in PDF format and posted to the class the morning of the live event and listed within the education dashboard for all registrants to securely access prior to the start of the webinar. When opting to print downloadable materials, it is recommended that settings be adjusted to print in black and white (or grayscale) and consider printing double-sided on recycled paper.
Certificate of Completion
A certificate of completion will be available to view and/or download immediately via your education dashboard once all required components are completed.
Carla S. Nunes, CFA, ABV
Carla S. Nunes, CFA, ABV, is a Managing Director in the Office of Professional Practice of Kroll. In addition, Carla is the Global Leader of Kroll’s Valuation Digital Solutions group, which produces cost of capital thought leadership content and data housed in the Cost of Capital Navigator. She has over 25 years of experience in valuation, financial reporting and tax, conducting numerous business and asset valuations for a variety of purposes including purchase price allocations, goodwill and asset impairments, mergers & acquisitions, tax restructuring, debt analysis, and gift and estate tax planning. Carla also has extensive experience working with multinational companies, having addressed complex tax, international cost of capital, and foreign exchange issues. Carla is a contributing author to “Cost of Capital: Applications and Examples,” 5th edition, by Shannon Pratt and Roger Grabowski. She is a co-author of the “Valuation Handbook” series and co-creator of the Kroll Cost of Capital Navigator. She recently co-authored Kroll’s ESG and Global Investor Returns Study and was a contributing author to The Appraisal Foundation’s “The Art of Valuation. Carla is a member of the Education Committee at the iiBV, and just completed her two-year term as Practitioner Director in the Board of FMA International.
James P. Harrington
James P. Harrington is a Director in Kroll’s Valuation Digital Solutions group, which produces the content and data housed in the Cost of Capital Navigator. James provides technical support on client engagements involving cost of capital matters. Previously, James was director of valuation research in Morningstar’s Financial Communications Business. James is co-author of the “Valuation Handbook” series with colleagues Carla Nunes and Roger Grabowski. James is co-author of the Stocks, Bonds, Bills, and Inflation® Summary Edition with Roger Ibbotson (Professor in the Practice Emeritus of Finance at Yale School of Management). James is a contributing author to Cost of Capital: Applications and Examples, 5th edition, by Shannon P. Pratt and Roger J. Grabowski. James is a contributing author to Shannon Pratt’s Valuing a Business – The Analysis and Appraisal of Closely Held Companies, Sixth ed. Jim has recently co-authored Kroll’s ESG and Global Investor Returns Study.