In this assignment, you will recalculate the value of the company’s stock based on your company’s specific required rate of return. To do this, you will calculate the required rate of return for your chosen publicly traded company using the capital asset pricing model (CAPM). Last week, you determined a preliminary estimate of the company’s stock price using the constant growth formula. To simplify the calculation, you were required to use general market required rates of return, based on size. However, this is an assumption that does not account for the specific risk of an investment in a specific company. This week, you will calculate the required rate of return for your chosen publicly traded company using the CAPM. The CAPM is a more precise tool to estimate a firm’s required rate of return. This tool is “tremendously valuable because required returns are used as the discount rates in the valuation formulas when doing time value of money problems and security valuation” (Hickman et al., 2013, Section 9.3, para. 1). You will then use this CAPM required rate of return to revise your stock price value based on the constant growth formula. This will allow you to determine your final recommendation of buy, hold, or sell. Prepare: Prior to beginning work on this assignment, Complete both of the Week 4 learning activities Review Chapters 7 and 9 of Essentials of finance. Review the Week 5 - Final Project. Review the Week 4 Model Assignment (Links to an external site.). Watch the following video: BUS401 - Valuation Conclusion (Links to an external site.) Write: In your paper, address the following five parts in a Word document: Part 1: (two paragraphs) Explain the three types of risk and beta, and how these concepts relate to a company’s required rate of return. Part 2: (two paragraphs) Find your company’s beta from a credible source. You can get this information from the Mergent database or by looking it up on a financial website like Yahoo! Finance (Links to an external site.). Compare your company’s beta to the market beta of 1.0.  Calculate the company-specific required rate of return using the CAPM formula. Show all calculations.  Use the beta you determined for your chosen company Use a risk-free rate of 2.0%. For the market risk premium, use the following assumptions: For a large capitalization company (greater than $10.0 billion in market capitalization) use 6.0% as the market risk premium. For a mid-cap company (between $2.0 billion and $10.0 billion in market capitalization) use 8.0% as the market risk premium. For a small-cap company (less than $2.0 billion in market capitalization) use 11.0% as the market risk premium. Compare the company-specific required rate of return you calculated to the required return based on size you used in Section 3: Dividend Analysis and Preliminary Valuation in Week 3 for the constant growth formula. Determine whether the company-specific required rate of return higher or lower than the rate of return based on size that you used in Section 3 in Week 3 for the constant growth formula? Explain the difference in required rate of returns. Part 3: (two to four paragraphs) Recalculate both estimates (the low-end and the high-end) of the stock price using the constant growth formula. Use the company’s specific required rate of return you determined using the CAPM. Review your selected high-end and low-end growth rates from Week 3.  If either growth rate is higher than the new CAPM discount rate, you must reduce your selected growth rate(s). Your growth rates cannot be higher than the discount rate, because the calculations will result in a negative stock price, which is not meaningful. Include a short, written explanation to explain the revised growth rates. Show your revised high-end and low-end stock price calculations Compare each of the two recalculated stock prices to the current stock price per share of the company. State whether each recalculated stock price (low-end and high-end) is above or below the current market price. State whether each recalculated stock price (low-end and high-end) indicates if the stock price is currently under-valued or over-valued in the market. (See Section 9.3: Required Returns in your course text.) State your recommendation for your concluded stock price for the company. Use either the high-end stock price or the low-end stock price from the constant growth formula using the CAPM required rate of return. Justify the conclusion of value for your stock based on the most important financial facts from the prior weeks’ analysis.

Using the downloadable software, templates provided, or other preferred software, such as Microsoft Excel:Complete a WBS for your project. Work Breakdown StructureThis list of activities needs to contain enough detail so you can effectively plan and schedule your event.Using the completed WBS as a reference, next complete a Gantt chart of your project using the template provided. If you discover in the process you overlooked activities make sure to include them in the WBS.Gantt ChartIn a paper that is a minimum of 2 pages long, identify the Critical Path for your project. Using the WBS and the Gantt chart you constructed for this project analyze how much longer you will need to start planning in advance of your event in order to complete the project? Your submission should follow the essentials of APA (i.e., cover page, double-spaced, 12 pt. font, reference section at the end, in-text citations, etc.). Would you like information about how to format in APA? Click here.Papers should be spell-checked and submitted to Grammarly prior to submitting your paper to the drop box. "Grammarly" is a free service for Rasmussen students. Once you've made all of your suggested grammar corrections, submit your paper to the Drop Box, along with your Grammarly PDF report as a separate attachment. Your goal is to obtain a Grammarly score of 90 - 100%.Part 2For this part of the Course Project, you will put together a Quality Plan. In order to provide the highest quality experience possible, attendees of the event were surveyed to determine what was most important to them when attending such an event. The result of this survey is listed below:- 90% of those completing the survey felt that having engaging and dynamic speakers is key to a successful event- 90% felt that it was important that the accommodations were physically located where the convention is being held; they didn't want to have to take a bus or a shuttle from their hotel to the convention.- 85% stated the food provided should be wonderful and meet any dietary restrictions, such as vegetarian or gluten-free.For your assignment, you will need to do the following:Complete a scope statement for your project (Use may use the templates for Project Scope and Business Objective Worksheet provided). Your project Scope should be at one page in length.Project Scope and Business Objective Worksheet

Step 1. Conduct a job search for positions available currently in your current field of study. After reviewing no less than five job postings, choose one that you would like to apply for (Please note, I am not asking you to apply in real life!). If you do not have the skill set needed to apply for the position, it is okay to assume that you are applying to be an intern in the role. Step 2. Draft a personal resume. You are welcome to use the templates that come with Microsoft Word, however, keep in mind that these are widely used so your resume may not stand out as it would if you used your own formatting. Step 3. Review the course materials on resume formats and do some internet research on your own to look for sample resumes for the type of job you wish to apply for. Step 4. Revise, edit, and proofread your resume so that it is professional in appearance and appropriate based on your background and the industry you wish to work in. Consider what key words should be on the resume so that it would be selected for interview during a computer generated selection process. PLEASE PROOFREAD! In some companies, a typo on a resume results in the immediate rejection of that candidate. Research what may legally be on a resume for your industry. For example, many industries will not even consider your resume if it has a photo, but including photos is common in some. Step 5. Once you have completed the revision and editing process, SAVE your resume using the following protocol for the file name Word_Resume_yourfirstname_yourlastname . Upload/Submit your file. Grading will be based on the following criteria: Format: Appropriate type of resume format selected for chosen industry (In most cases, a chronological format is appropriate. This is not the case in ALL industries.) Resumes should be easy to follow, visually appealing, and free of clutter. Sections and headings should be logical and easy to understand. Content: Content should be clearly written and present a TRUE representation of you and your background. Past employment must include title, name of business, and beginning/end dates of employment. Include your current education with an anticipated graduation date. Volunteer experience should be included when appropriate. It is NOT acceptable to include or mention references on the resume. Do NOT include date of birth, personal photo, etc., unless you are applying for an industry that requires/allows this information. Errors: There should be ZERO spelling, grammatical, typographical, formatting, or any other errors. Word Formatting: Margins should be no less than 1/2 inch and no greater than 1 inch on all sides. Font size should be 11 or 12 point (name may be slightly larger). Font selected should be common, simple, and consistent throughout (multiple fonts are not acceptable). If bullets are used, they should be simple (no pictures). Resume file name (Word_Resume_yourfirstname_yourlastname) is correct. Page Count: Resume must fit on one or two full pages.