Write a 2-3 page paper in APA format (not including the cover page and reference page) and complete the six (6) templates. Please click here to view the criteria by which you will be assessed for the achievement of the CLO for this unit. Please use the APA Sample provided in in the student resources to complete your assignment. For this class, you will be analyzing a project. You may select a project that you have worked on in the past, or you may make up a fictitious project. Another choice is to Google for failed projects and then develop a plan that would have helped the project succeed. In most cases, you will need to develop a plan for a ground based team to successfully complete the project; and at the same time, you will develop a plan for a virtual team to successfully complete the project. As you know, each type of project will face its own challenges and as you develop your plan for project success, you need to address the differences in the projects. You do not have to use the same project from week to week, but you may find it helpful to do so. If you decide to change projects, each week, you will need to explain to your instructor an overview of the project. This week, you will complete a stakeholder register for a virtual team and a stakeholder register for an on-ground team. You will also complete a stakeholder management plan for both teams. Download the Stake holder-register-template and stakeholder management plan. You also need to complete a risk management plan for each team. Download the risk management plan. After you have completed the templates, write a paper in APA format that explains why you think your stakeholder management plan and risk management plan will be effective for each team.

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.