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The Cost of Capital - The When, Why & How

Available Until

Self-study

1.50 Credits

Member Price $59.00

Non-Member Price $79.00

Overview

Have you ever wondered why a company chooses certain ways of capital funding over others? Through analysis, discussion questions, and a review of prevailing financial theory, this course explores why some companies choose debt financing, while others choose equity financing.

Highlights

  • Defining Capital & Capital Structure Theories
  • Calculating Weighted Average Cost of Capital (WACC)
  • Cost of Common Equity
  • Cost of Debt
  • Cost of Preferred Equity
  • Importance of WACC
  • Other Quantitative Measures
  • Choosing Debt vs. Equity
  • Summing It Up

Prerequisites

Basic knowledge of corporate finance

Designed For

Financial professionals, CPAs, Controllers and Accountants who are looking to gain a better understanding of the theoretical and practical considerations that go into capital funding decisions

Objectives

  • Explain signaling theory, the Modigliani
  • Miller theorem, and some of the other ideas that inform our understanding of optimal capital structure
  • Calculate Weighted Average Cost of Capital (WACC)
  • Determine the components of WACC and approximations that are used for each component
  • Discuss the reasons a company might use debt vs. equity financing

Preparation

None

Notice

This is a self-study/on demand course offered by a 3rd party vendor and will not be accessible in the My Upcoming CPE section of the ISCPA website. Course access information will be emailed directly to you by Peters Professional Education (PPE). The course expires one year from the purchase date.

Leader(s):

Leader Bios

David Peters, Peters Professional Education LLC

DAVID R. PETERS, CPA, CFP, MST, CPCU, CLU

David Peters is the Founder and Owner of Peters Professional Education and Peters Tax Preparation & Consulting, PC. He is also a financial advisor for Peters Financial, LLC. David has over twenty years of experience in financial services, including 3 years in the hedge fund industry and 14 years in the insurance industry. David was the first-ever Chief Financial Officer at Compare.com - a position he held for more than three years.
In addition to running his own professional education website, David is a National Instructor for the AICPA, Surgent, Kaplan, and Don Farmer Tax Seminars. He was a recipient of Surgent's Outstanding Discussion Leader award in 2019 and 2022, as well as the AICPA's Outstanding Facilitator Award in 2021 and 2023. He regularly teaches courses in accounting, finance, insurance, financial planning, and ethics throughout the United States. David holds four masters degrees, and is currently pursuing his PhD in Financial Planning. He contributes regularly to various CPA publications, including NCACPA's Interim Report, SCACPA's CPA Report, and VSCPA's Disclosures. David was also a co-author of the 2018, 2019, and 2020 Virginia CPA Ethics courses - a required course for all CPA's licensed in the Commonwealth of Virginia.

  • Website:  www.petersprofessionaleducation.com
  • YouTube: www.youtube.com/@DavidPetersFinancial
  • LinkedIn Company: https://www.linkedin.com/company/95657499/admin/analytics/updates/
  • LinkedIn Personal: https://www.linkedin.com/in/david-peters-financial/
  • Facebook: https://www.facebook.com/davidpetersfinancial
  • Twitter/X: https://x.com/DavidPFinancial
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Non-Member Price $79.00

Member Price $59.00

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