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| Advanced Issues Using the Single Period Capitalization of Cash Flow Model (1425B) |
Course CPE: 2 hour(s)
Field(s) of Study: Finance–2 hrs
Program Level: Intermediate
Prerequisites: A working knowledge of the Income Approach, particularly single period income or cash flow capitalization models.
Advanced Preparation: None
Delivery Method: QAS Self-Study
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Item
Number: 20BV0806AIU1
Shipping Weight: 0lbs. 0oz. |
| Price:
$110.00 |
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Single period capitalization models should not be taken lightly. Don't get caught taking costly short cuts. Income is not cash flow and key factors must be considered for proper application: 1) Is the business a good fit for a single period cap. model vs. multi-year DCF?; 2) How to establish normalized revenue levels and profit margins; 3) Estimating "blended" growth based resulting from a super-normal growth phase; 4) Impact of abnormal working capital and capital expenditure levels; and 5) Estimating WACC and Cap. Rate by considering normal debt financing level.
After completing the course, attendees will be able to:
- Identify when a business is a good fit for a single period cap. model vs. a multi-year DCF
- Estimate normalized revenue levels and profit margins
- Calculate an estimated "blended" growth rate based on a super-normal growth phase
- Select adjustments for abnormal working capital and capital expenditure levels to ensure accurate measurement of sustainable cash flow
- Identify methods used to estimate a normal debt financing level in the WACC and adjust Cap. Rates to reflect the mid-year convention
- Identify the benefits and weaknesses of the single period cap. model
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered 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 registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
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