The Old Valuations out of WACC – changing risk premia post-GFC

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Date/Time

Date(s) - 27/10/10
11:30am - 3:30pm

Location

Queens Loft, Southbank
133 Queensbridge Street


The Program

Techniques such as Weighted Average Cost of Capital (WACC) are commonly used by: corporations – to help determine the optimal balance sheet mix of debt versus equity, regulators – to set an appropriate required rate of return on capital invested in regulated industries, and fund managers – to assist investment decision-making in company shares and discrete projects.

Both the theoretical foundations and practical application of WACC and associated techniques such as CAPM (Capital Asset Pricing Model) have long been matters of debate. Post-GFC, these questions are not merely academic but central to investment decisions and, often, project viability.

Delegates to this workshop will:

  • Be exposed to various forms of WACC and changes to risk premia
  • Learn what is happening in debt markets and implications for the cost of debt
  • Understand estimates of MRP and assess the cost of equity using CAPM
  • Appreciate the impact of imputation tax on WACC
  • Be shown the uses of WACC for corporate decision making
  • Hear from an experienced panel of practitioners In conjunction with FTA

 


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