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Who Cares if You Have the Alleged and Dubious Size Premium "Right"—It's the Total Cost of Equity that Matters

 Who Cares if You Have the Alleged and Dubious Size Premium "Right"—It's the Total Cost of Equity that Matters
CPE Credit

Program Type: Recorded Webinar(Audio, PPT Presentation)
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: Two (2) Hours
Fields of Study: Finance, Statistics
Item Number: 17PBVCHI0608A
Shipping Weight: 0lbs. 0oz.
Price: $110.00
Program Description

Mr. Butler will discuss the need for, and appropriate next (and final) steps, in the development of the cost of capital for a privately held company to include empirical data from the public stock market for idiosyncratic risk and the use of the Implied Private Company Pricing Model. “Without such data, you are just another person with an opinion.”

Learning Objectives

After completing the webinar, attendees will be able to:

- Recognize that without total beta, data from publicly traded stock returns fails to capture idiosyncratic risk
- Differentiate between company-specific risk and idiosyncratic risk
- Recognize the huge leaps of faith one must take from the alleged size premium to estimate an appropriate cost of equity for a privately held company
- Use total beta to help calculate guidelines’ total cost of equity, which includes idiosyncratic risk, to use in their business appraisal practice
- Use the IPCPL to help estimate their subject company’s cost of capital

Who Should Attend

Financial Professionals


Peter Butler
Mr. Peter Butler has more than 20 years of financial/business valuation experience. He co-developed the Butler Pinkerton Calculator and the Implied Private Company Pricing Line/Model. He has published articles in all of the major U.S. business valuation journals, as well as in a Romanian journal. Mr. Butler has been invited to speak at regional, national, and international valuation conferences. He holds a BS in mechanical engineering from Annapolis and an MBA from San Diego State. Mr. Butler served as a four-term president of the CFA Society of Idaho and taught corporate finance at George Fox University.