Cost of Capital

Topics covered

• Weighted average cost of capital model – uses, understanding, and calculations
• Capital structure
• Cost of debt
• Cost of equity – CAPM
• Beta (including delevering and relevering)
• Gamma (imputation)
• Weighted average cost of capital model in regulated industries (building blocks)

Who should attend?

The workshop is designed for chief executive officers, finance and treasury managers, and staff responsible for financial risk management and/or project evaluation. No knowledge of the topics is assumed; participants with prior experience may find the workshop useful to refresh and extend their knowledge.

The QTC Education Program is only available to Queensland Public Sector Employees (this includes employees of the Queensland Government, Queensland government departments, local governments, statutory corporations, and other entities to the extent they have an association or are related to the State of Queensland) and QTC employees. By registering for a workshop or webinar, you acknowledge that you are a Queensland Public Sector Employee. QTC/UQ reserves the right to unenroll any person that is not a Queensland Public Sector Employee or QTC employee from any workshop or webinar in the Education Program. If you are unenrolled from a workshop or webinar you will be entitled to receive a full refund of any workshop fees paid.

Outcomes

At the completion of the workshop participants will be able to:

• understand the key inputs of the weighted average cost of capital (WACC) model, including the risk free rate, cost of debt, beta, gamma and the market risk premium, and put these components together to calculate an overall WACC.

Practical exercises

Participants will undertake exercises, including small case studies, to allow them to determine the cost of capital. Financial mathematics background information and formula will be provided.

Download workshop brochure

Continuing professional development

Completion of QTC Education Program workshops may be recognised for the purpose of continuing professional development hours for members of the Australian Institute of Company Directors (AICD), CPA Australia, Chartered Accountants Australia and New Zealand (CA), Financial Services Institute of Australasia (FINSIA), Governance Institute of Australia, and other professional bodies and associations.