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| Current Economic and Financial Market Conditions and How They are Affecting Cost of Capital (1731Q) |
Course CPE: 2 hours
Field(s) of Study: Economics–1 hr; Finance–1 hr
Program Level: Update
Prerequisites: Participants need a background in the subject area and desire to keep current.
Advanced Preparation: None
Delivery Method: QAS Self-Study
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Item
Number: 23BV1214CEF
Shipping Weight: 0lbs. 0oz. |
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$147.00 |
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Recording Date: December 14, 2023
Presenter: Jim Harrington and Carla Nunes
Program Description:
After reaching a 41-year record high in June 2022, U.S. inflation has begun its downward descent. Nevertheless, core inflation (i.e., excluding the volatile energy and food prices) remains stubbornly high. The Federal Reserve (Fed) embarked on one of its most aggressive rate hiking cycles in history. Equity markets have recovered most of their losses in 2023, but there is still uncertainty on whether the Fed will achieve a soft landing for the U.S. economy, as it continues to raise interest rates (or keep them at a higher level). This means that companies are now facing a higher cost of capital that matches the levels last seen during the 2008-2009 Global Financial Crisis. Our session will unpack the latest economic and financial market developments that have an impact on valuations and cost of capital estimates.
After completing this course, you will be able to:
- Identify the current U.S. economic and financial market conditions that may impact on cost of capital estimates
- Identify the effect of a higher inflationary environment on U.S. real GDP growth projections and repercussions on a company's projected revenue growth and long-term growth
- Determine how the Federal Reserve's policy of “higher for longer” are changing the expectations for future discount rates
- Determine the impact of higher interest rates on cost of debt and cost of debt estimates
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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