Weighted Average Cost of Capital
(WACC) for Business Valuation:
Course Description:
This one-hour, in-person Continuing Professional Education (CPE) course is expressly designed for finance professionals, business appraisers, accountants, and consultants who seek to enhance their understanding of Weighted Average Cost of Capital (WACC) and its fundamental role in business valuation. Through a balanced combination of theoretical insights, practical examples, and interactive discussion, participants will deepen their comprehension of how to calculate WACC, interpret its components, and apply it to the process of valuing a business.
WACC represents a pivotal concept in corporate finance, serving as the benchmark discount rate used to assess the value of investment opportunities and companies as a whole. An accurate estimation of WACC improves the reliability of cash flow discounting and valuation models, ultimately supporting sound business decisions. This session guides attendees through the underlying principles, data sources, calculation steps, and real-world applications of WACC in business valuation contexts.
By the end of the session, participants will be able to:
- Define the concept and components of Weighted Average Cost of Capital
- Differentiate between the costs of equity, debt, and preferred capital
- Identify practical challenges and common pitfalls when determining WACC
- Apply WACC appropriately in business valuation models
- Critically evaluate WACC assumptions and their impact on valuation results
This course is highly recommended for professionals involved in mergers and
acquisitions, business appraisal, financial consulting, and those responsible for
investment analysis and strategy.
Learning Objectives:
Upon successful completion of the course, attendees will be able to:
- Articulate the rationale for using WACC in the valuation of businesses and
projects - Break down the formula for WACC and explain the function of each variable
- Source relevant market data to estimate costs of capital components
- Recognize the effects of capital structure, taxes, and risk on WACC
- Utilize WACC to discount projected cash flows and estimate enterprise value
Who Should Attend?
This course is tailored for:
- CPAs and Accountants
- Business Valuators and Appraisers
- Corporate Finance Professionals
- Investment Analysts
- Consultants and Advisors
- Anyone seeking foundational knowledge in business valuation
Prerequisites:
- Basic financial accounting
- Introductory valuation concepts
- Basic math and Excel skills
Advanced Preparation:
None required
Program Level:
Intermediate
Instructional Methods:
- Interactive lecture with visual aids (slides, whiteboard)
- Real-world examples and calculation exercises
- Group discussion and Q&A
- Case studies for practical application
Course Materials Provided:
- Slide presentation covering all topics
- Handout: Sample WACC calculations and formulas
- Reference sheet: Common data sources for capital costs
- List of further readings and online resources
CPE Credit Information:
- Duration: 1 hour (1.0 CPE credits)
- Live, Webinar
- Field of Study: Finance
Contact and Registration:
For more information or to register for this course, please contact us at
[email protected] or call us at 609-201-8056
Refunds and Cancellations:
Requests for refunds must be received in writing by 10 days prior to course date and
will be subject to a cancellation fee. No refunds will be granted 3 days prior to course
date. For more information regarding refund, complaints, and/or program cancellation
policies please contact our offices at 609-201-8056.
The Davv Group is currently seeking registration 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 final authority on the acceptance of individual courses for
CPE credit. Complaints regarding sponsors may be submitted to the National Registry of CPE Sponsors
through its website: www.nasbaregistry.org or the New Jersey State Board of Accountancy:
www.njconsumeraffairs.gov/acc.