A number of criticisms have been swirling around various issues relating to cost of capital. Roger Grabowski (Duff & Phelps) addresses these in a newly updated online education course that BVR is proud to offer.
On the hot seat: Models for developing cost of capital, such as the capital asset pricing model (CAPM), are being attacked as unreliable. Some say the size adjustment is no longer valid. Others argue that the specific company risk adjustment lacks a sound theoretical framework. Grabowski sorts through these issues during this unique online presentation.
This course, developed for the American Society of Appraisers, is designed around the landmark book, Cost of Capital, now in its fifth edition, co-authored by Grabowski and Shannon Pratt (Shannon Pratt Valuations). Topics covered in this course have been updated and expanded with the release of the new edition. They include the latest developments regarding data sources, the risk-free rate, the equity risk premium, beta and other measures of risk, alternative cost of equity capital models, issues with distressed companies, and pass-through entities.
For more information on Cost of Capital: An On-Demand Course, click here.
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