FP&A – Capital Budgeting Continued and the Cost of Capital

Monday, April 3rd
Room 303
11:30am – 12:30pm
Intermediate

Dr. Matthew Hill, CMA, CTP, FP&A, Director, Arkansas State University Center for Treasury and Financial Analytics

Session Description

This session continues the review of capital budgeting metrics and describes the calculation and use of the cost of capital concept. Specific topics covered include:

  • Calculation and interpretation of the internal rate of return, payback period, and discounted payback period capital budgeting metrics
  • A description of the assumptions and models used to estimate the individual components of the cost of capital (i.e., the cost of equity and the cost of debt)
  • Calculation and interpretation of the cost of capital