ACFS Cost of Capital Workshop | Australian Centre for Financial Studies

ACFS Cost of Capital Workshop

Current Issues in Estimating the Cost of Capital

Monday, 7 November 2011

ACFS Half Day Workshop 1 – 4.30pm

Venue Partner – Austock Group, Level 12, 15 William Street Melbourne

The objective of this workshop is to provide bankers, regulators and industry participants with insights into the determination of the cost of capital following the Global Financial Crisis.

The cost of capital (of debt and equity) and the Weighted Average Cost of Capital (WACC) are key parameters for financial decision-making, evaluation of performance, and for valuation.

Are pre-GFC norms still appropriate?
What are the best ways of estimating the cost of capital?
What is the best version of WACC to use to deal with taxes and other complications

Program and registration

Time	Topic
1pm	Introduction: Current Issues in WACC and the Regulatory Building Block Model
1.30pm	Mini workshop
1.45pm	The Cost of Equity Capital: How does the CAPM compare against alternatives (such as the Fama-French three factor model)? Is the Market Risk Premium stable (historical evidence and forward looking estimates)? Estimating Equity betas
2.30pm	Refreshment Break
2.45pm	Taxes, the Cost of Equity and the WACC: How should the effect of dividend imputation be assessed? What is the effect of capital gains taxes? What are the merits of the alternative formulations of the WACC (such as the “vanilla WACC”)?
3.30pm	Structured Q and A session / mini workshop
3.45pm	The Cost of Debt: What are the recent trends in debt markets and credit spreads? What are the determinants of credit spreads? What debt maturity is appropriate? What are appropriate “comparables” for estimating the cost of debt?
4.15pm	Summary and Conclusion
4.30pm	Close

Who would benefit attending:

Chief Financial Officers
Corporate Treasurers
Finance Accountants
Fund Managers
Economic Advisers
Investment Analysts
Corporate Advisers
Government and Regulatory Managers
Regulators
Finance Academics
Consultants

Registration fees (include gst):

Category	Investment
FULL TIME Student	$ 88.00
FULL TIME Academic	$176.00
ACFS Corporate Sponsor / Supporter	$264.00
Industry Practitioner	$352.00
Group 3+ (per person)	$308.00

REGISTER NOW – Program and registration

CLOSING DATE: Wednesday 2 November 2011

Contact: Frieda McLoughlin events@australiancentre.com.au

T: +61 3 9666 1007

About ACFS:

The Australian Centre for Financial Studies (ACFS) facilitates industry-relevant and rigorous research and consulting, thought leadership and independent commentary. Drawing on expertise from academia, industry and government, the Centre promotes excellence in financial services.

The Centre specialises in leading edge finance and investment research, aiming to boost the global credentials of Australia’s finance industry, bridge the gap between research and industry, and support Melbourne as an international centre for finance practice, research and education.