Measuring Risk
Presented by BVR and the New York State Society of CPAs/Foundation for Accounting (NYSSCPA/FAE)
Teleconference Presentation - Earn three interactive CPE credits
Featuring Susan Mangiero, Ph.D., AVA, CFA, AIFA, FRM, Aswath Damodaran, Ph.D and Robert T. Slee, CBA
Monday, May 19, 2008
10:45am-1:40 pm PDT / 11:45am-2:40pm MDT / 12:45pm-3:40pm CDT / 1:45pm-4:40pm EDT
Register for this teleconference for $249.00 (live from the NYSSCPA/FAE Meeting)
Register for teleconference and On Demand Conference Pack ($339.00)
This program is presented by Business Valuation Resources, LLC. Earn THREE Interactive CPE credits for participating in this conference. Only $249.00 for a single dial-in connection. Purchase additional CPE credits for other listeners sharing the same phone connection for only $49.00 per person. For more information about our teleconference programs and registration requirements, click here.
Program Prequisites: Knowledge of Business Valuation
Program Level: Advanced
Advance Preparation Required: None
Delivery Method: Group-Live
Recommended CPE Credit: 3 CPE Credits
Learning Objectives:
- To introduce practitioners to cutting-edge business valuation and litigation support topics
- Gain deeper insight into qualifying and quantifying factors for measuring risk
- Understand how to properly estimate equity risk premiums
Program Outline:
- NYSSCPA/FAE (Live from New York) Conference Speaker and Topic Introductions
- Session One: Qualifying and Quantifying Factors of Measuring Risk featuring Susan Mangiero, Ph.D., AVA, CFA, AIFA, FRM, President & CEO, Pension Governance, LLC: In general, the quoted (or nominal) interest rate on a debt security is composed of the real risk-free rate of interest plus several premiums that reflect inflation, the riskiness of the security, and the security’s marketability (or liquidity). The riskiness of the security can be affected by its default risk, maturity risk, and reinvestment rate risk. The interest rate or cost of money assigned to an equity security combines all of these risks plus market risk to derive the equity risk premium. This session explores these components of risk in detail to give the business appraiser a better appreciation of how discount rates are ultimately derived.
- Session Two: Equity Risk Premiums featuring: Aswath Damodaran, Ph.D., Professor of Finance, Leonard N. Stern School of Business: Equity risk premiums are a central component of every risk and return model in finance. Given their importance, it is surprising how haphazard the estimation of equity risk premiums remains in practice. In the standard approach to estimating equity risk premiums we use historical returns, with the difference in annual returns on stocks and bonds over a long time period comprising the expected risk premium. We note the limitations of this approach - even in markets such as the United States, which have long periods of historical data available - and its complete failure in emerging markets, where the historical data tends to be limited and chaotic. We suggest ways in which equity risk premiums can be estimated for these markets, using a base equity premium and a country risk premium. Finally, we suggest an alternative approach to estimating equity risk premiums that requires no historical data and provides updated estimates for most markets.
- Session Three: Private Company Cost of Capital featuring Robert T. Slee, CBA, President, Robertson & Foley, an Affiliate of the National Business Valuation Group, LLC: Private capital markets theory is the integrated capital markets theory unique to private companies, especially those with annual sales of $5 million to $500 million. This theory describes the valuation, capitalization, and transfer of private business interests. Typically a private business owner is faced with a financial problem that can only be solved by drawing information from throughout the body of capital knowledge. Finally, corporate finance theory was developed in the 1960s to explain the behavior of large companies in the public capital markets. These theories include: capital asset pricing theory, efficient market theory, option pricing theory, agency theory, net present value, and portfolio theory.
- Each session will feature a Q & A session towards the end for both live and teleconference attendees. Given the nature of this event, please email your questions early to tc-questions@bvresources.com.
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Aswath Damodaran, Ph.D. Professor of Finance, Leonard N. Stern School of Business Aswath Damodaran is a Professor of Finance at the Stern School of Business, New York University. Before coming to Stern, he also lectured in Finance at the University of California, Berkeley. Professor Damodaran received a B.A. in Accounting from Madras University and a M.S. in Management from the Indian Institute of Management. He earned an MBA (1981) and then Ph.D. (1985), both in Finance, from the University of California, Los Angeles. Professor Damodaran's contributions to the field of Finance have been recognized many times over. He has been the recipient of Giblin, Glucksman, and Heyman Fellowships, a David Margolis Teaching Excellence Fellowship, and the Richard L. Rosenthal Award for Innovation in Investment Management and Corporate Finance. His skill and enthusiasm in the classroom garnered him the Schools of Business Excellence in Teaching Award in 1988, and the Distinguished Teaching award from NYU in 1990. His student accolades are no less impressive: he has been voted "Professor of the Year" by the graduating MBA class five times during his career at NYU. In addition to myriad publications in academic journals, Professor Damodaran is the author of several highly-regarded and widely-used academic texts on Valuation, Corporate Finance, and Investment Management. Professor Damodaran currently teaches Corporate Finance and Equity Instruments & Markets. His research interests include Information and Prices, Real Estate, and Valuation. |
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Susan Mangiero, Ph.D., AVA, CFA, AIFA, FRM, President & CEO, Pension Governance, LLC Susan M. Mangiero has over 20 years of experience on both the buy and sell side in capital markets, trading, global treasury, asset-liability management, portfolio management, economic and investment analysis, derivatives, financial risk control and valuation. Prior to founding two companies, Susan Mangiero worked for organizations that include General Electric, PricewaterhouseCoopers, Bank of America, Bankers Trust, First National Bank of Chicago and the National Economic Research Associates. She was selected as risk management specialist for the World Bank team tasked with a review of the Chilean national retirement program. Dr. Mangiero has done forensic and expert witness work on a variety of investment, risk and valuation cases. Her book, Risk Management for Pensions, Endowments, and Foundations (John Wiley & Sons, 2005), looks at risk management and valuation issues, with an emphasis on fiduciary responsibility and best practices. She has written for many prominent magazines, is widely quoted in publications such as the New York Times, Wall Street Journal, Baltimore Sun, Bloomberg and Pensions & Benefits and is regularly invited to address groups such as the U.S. Department of Labor, New York State Department of Insurance, National Association of Public Pension Auditors and Financial Executives International. A Chartered Financial Analyst, Dr. Mangiero holds the designation of Accredited Valuation Analyst from the National Association of Certified Valuation Analysts and is certified by the Global Association of Risk Professionals as a Financial Risk Manager. In August 2006, she was awarded the Accredited Investment Fiduciary Analyst designation from the Center for Fiduciary Studies. She holds a Ph.D. in finance from the University of Connecticut, an MBA in Finance from New York University, an MA in Economics from George Washington University, and a BA in Economics from George Mason University. Post-graduate computational finance work was done at Carnegie Mellon University. |
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Robert T. Slee, CBA, Robertson & Foley Robert T. Slee is President of Robertson & Foley, an Affiliate of the National Business Valuation Group. A middle market investment banking firm, Robertson & Foley provides sophisticated finance solutions to middle market companies located throughout the United States. He has authored more than 100 articles on private finance topics in a variety of legal and business journals. His book Private Capital Markets, was published in mid-2004 by John Wiley & Sons, and is now considered the seminal work in finance for private companies. He is an adjunct faculty member at Loyola University, and co-teaches a course there on mergers and acquisitions.
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 | CPE Credit Information Earn
3 Interactive CPE Credits (Consulting Services) |
Please note: To receive CPE credit, you must fill out the post conference survey. The survey link is emailed to participants along with the dial in instructions, normally sent two or more days prior to the conference. CPE credit only registrants will be sent the survey link via email as well. To ensure appropriate and timely delivery of this information, please make sure your email address for each registrant (main and CPE only) is up to date when placing your order. Also, if you transfer your registration last minute to another attendee, please plan to forward the dial in instructions to them unless you have notified BVR of the change prior to the conference.
Complaint Resolution & Refund Policy:
Business Valuation Resources offers a 100% money-back guarantee. If you are not completely satisfied with your conference experience, or have any concerns or complaints, you may contact Business Valuation Resources at (503) 291-7963 for a satisfactory resolution of your concern, or you may submit a written request for a full refund within 30 days of the date of this program to Stephanie Crader at Business Valuation Resources, LLC, 1000 SW Broadway, Suite 1200, Portland, OR 97205 or at stephaniec@bvresources.com or at (503) 291-7963, ext. 102.