Chapter 8: Risk Assessment and Prospective Analysis

In this section

• Capital Structure and Cost of Capital
  Explore essential concepts in capital structure, WACC, and financial risk, with practical examples, diagrams, and best practices for CPA candidates.
• Capital Budgeting Tools (NPV, IRR, Payback)
  Explore key capital budgeting metrics and methodologies—NPV, IRR, and Payback Period—essential for evaluating project feasibility, risk assessment, and long-term profitability in CPA exam scenarios.
• COSO ERM Overview for Business Analysis
  Discover how the COSO Enterprise Risk Management framework integrates with strategic planning and performance measurement, guiding organizations toward informed risk-aware decisions and robust business analysis.
• Market Influences (Demand, Inflation, Interest Rates, Currency)
  Explore how demand, inflation, interest rates, and currency fluctuations shape revenues, costs, and valuations, and discover practical strategies for navigating these external forces in business analysis and forecasting.