Explain the three types of risk and beta

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,

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.
  • 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.

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The Section 4: Valuation Conclusion paper

Note: Since this is Section 4 of the Week 5 final project, there is no need for an introduction paragraph.

Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.

 Curtis’s CoffeeCookie Creations Curtis’s CoffeeCookie Creations

Instructions
Cookie Creations (Chapter 13)

This assignment is a continuation of the Cookie Creations case study. From the information gathered in the previous chapters, read the continuation of the Cookie Creations case study in Chapter 13 on page 13-32 of the textbook. The case study allows you to apply what you have learned about corporations and stocks from the unit lesson and required unit resources. Natalie’s friend Curtis Lesperance decides to meet with Natalie after hearing that her discussions about a possible business partnership with her friend Katy Peterson have failed. Natalie had decided that forming a partnership with Katy, a high school friend, would hurt their friendship. Natalie had also concluded that she and Katy were not compatible to operate a business venture together. Because Natalie has been so successful with Cookie Creations and Curtis has been just as successful with his coffee shop, they both conclude that they could benefit from each other’s business expertise. Curtis and Natalie next evaluate the different types of business organization. Because of the advantage of limited personal liability, they decide to form a corporation. Curtis has operated his coffee shop for 2 years. He buys coffee, muffins, and cookies from a local supplier. Natalie’s business consists of giving cookie-making classes and selling fine European mixers. The plan is for Natalie to use the premises that Curtis currently rents to give her cooking-making classes and demonstrations of the mixers that she sells. Natalie will also hire, train, and supervise staff to bake the cookies and muffins sold in the coffee shop. By offering her classes on the premises, Natalie will save on travel time going from one place to another. Another advantage is that the coffee shop will have one central location for selling the mixers. The current market values of the assets of both businesses are listed below. Curtis’s CoffeeCookie CreationsCash$7,130$12,000 Accounts receivable100800Inventory4501,200 Equipment2,5001,000**Cookie Creations decided not to buy the delivery van considered in Unit II. Combining forces will also allow Natalie and Curtis to pool their resources and buy a few more assets to run their new business venture. Curtis and Natalie then meet with a lawyer and form a corporation on November 1, 2020, called Cookie& Coffee Creations Inc. The articles of incorporation state that there will be two classes of shares that the corporation is authorized to issue: common shares and preferred shares. They authorize 100,000 no-par shares of common stock and 10,000 no-par shares of preferred stock with a $0.50 noncumulative dividend. The assets held by each of their sole proprietorships will be transferred into the corporation at current market value. Curtis will receive 10,180 common shares, and Natalie will receive 15,000 common shares in the corporation. Therefore, the shares have a fair value of $1 per share. Natalie and Curtis are very excited about this new business venture, so they have come to you with the questions below.

  1. Curtis’s dad and Natalie’s grandmother are interested in investing $5,000 each in the business venture. We are thinking of issuing them preferred shares. What would be the advantage of issuing them preferred shares instead of common shares?
  2. Our lawyer has sent us a bill for $750. When we discussed the bill with her, she indicated that she would be willing to receive common shares in our new corporation instead of cash for her services. We would be happy to issue her shares, but we are a bit worried about accounting for this transaction. Can we do this? If so, how do we determine how many shares to give her?

Instructions:

  1. In a Word document, answer the questions posed by Natalie and Curtis above.
  2. In an Excel spreadsheet, prepare the journal entries required on November 1, 2020, the date when Natalie and Curtis transfer the assets of their respective businesses into Cookie & Coffee Creations Inc.
  3. Assume that Cookie & Coffee Creations Inc. issues 1,000 $0.50 noncumulative preferred shares to Curtis’s dad and the same number to Natalie’s grandmother—in both cases for $5,000. Also assume that Cookie & Coffee Creations Inc. issues 750 common shares to its lawyer.
  4. Prepare the journal entries for each of these transactions. They all occurred on November 1. Prepare the opening balance sheet for Cookie & Coffee Creations Inc. as of November 1, 2020, including the journal entries in (b) and (c) above.

Provide your responses to Natalie and Curtis’s two questions in a Word document, which should be a minimum of one page in length. Complete the accounting for items b–d in one Excel spreadsheet; you may use multiple tabs to organize your response. In summary, you will submit one Word document containing item a and one Excel spreadsheet containing items b–d.

Analyze Technologies that enhance the human experience

Competency

Analyze Technologies that enhance the human experience

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

You are the training manager for a large manufacturing company that is planning a large renovation during a two-week shutdown. All of the equipment in the assembly area is being replaced, which will take the full two weeks.

As training manager, you are concerned about how you will train the workers in the assembly area as the new equipment will not be available until after the shutdown. By the end of the two-week renovation, the assembly employees must be trained and ready to begin work using the new equipment.

The manufacturer for the new equipment has suggested augmented reality (AR)/virtual reality (VR) might be a good training solution. The plant manager asks that you prepare a training plan to be shared with employees during the next plant meeting providing them the virtual reality retraining information. Be sure to support your recommendations with credible resources. Using the assigned readings in this module is a good starting point. Research databases are listed in the Resources area below.

Instructions

You are tasked with preparing a training plan proposal that will be distributed to leadership in the form of a PDF.

The training plan proposal should introduce the AR/VR training including the format and scope. It should discuss the advantages and concerns related to using AR/VR for retraining needs.

In Microsoft Word, create the training plan proposal and then save as a PDF. The training plan proposal should accomplish these objectives:

  • Introduce the training by name, purpose, scope, and format.
  • Examine how using AR/VR technology enhances the human experience during training and development.
  • Evaluate any concerns over using this AR/VR technology for retraining.
  • Compare this AR/VR retraining to a standard retraining process.
  • On an APA formatted reference page, cite supporting credible sources for your recommendations.

NOTE – Be sure the document displays proper grammar, spelling, punctuation, and sentence structure.

Evaluate technology used in digital transactions

Competency

Evaluate technology used in digital transactions

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

You are the financial advisor for a large antique coin and gold distributor. Some of your large customers are requesting the distributor begin accepting cryptocurrency, which is possible because of blockchain technology.

The distributor has been accepting credit cards and money transfers for many years. The fees associated with transactions have continued to increase. The fees have become so large that the distributor has been forced to pass along the cost to customers.

Customers outside the United States have also requested to use cryptocurrency since currency exchange rates can fluctuate greatly depending on world events.

The distributor asks that you prepare a presentation to stakeholders in the distributorship, discussing the acceptance of cryptocurrency, which uses blockchain technology. Be sure to support your recommendations with credible resources. Using the assigned readings in this module is a good starting point. Research databases are listed in the Resources area below.

Instructions

You are tasked with preparing a presentation that will discuss blockchain technology, which could allow the distributor to accept cryptocurrency. The presentation will discuss the types of cryptocurrency, the advantages, the concerns, and the risks related to using cryptocurrency in the business. The stakeholders may not be familiar with this technology so be thorough in your description of the technology.

In Microsoft PowerPoint, Prezi, or another presentation tool create the presentation. The presentation should be at least 6 slides and should accomplish these objectives:

  • Define blockchain and cryptocurrency technologies and how they work together
  • Evaluate the types of cryptocurrency technologies appropriate for the distributor
  • Explain how blockchain and cryptocurrency technologies create a competitive advantage for the distributor
  • Examine the risks associated with accepting cryptocurrency
  • Recommend that the stakeholders approve or deny the request to use cryptocurrency in a clear recommendation statement or call to action
  • Begin with a title slide
  • Use formatting tools to create visual interest and support the message visually
  • End with a References slide

NOTE – Be sure the document displays proper grammar, spelling, punctuation, and sentence structure.

Critique the implications of using technology and emerging trends in business

Competency

Critique the implications of using technology and emerging trends in business

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

You are the administrator for a small healthcare company. Your company is preparing the five-year technology forecast as a part of the company-wide plan. Your company knows that technology changes quickly and making sure patients have the latest innovations is important. Your company wants to explore some of the new trends in technology but is concerned about the legal and ethical implications.

The director of the healthcare company has asked that you create a 5-year forecast plan sharing with the leadership some new technologies in healthcare. The director is concerned with the legal and ethical implications of using emerging technology in patient care. Be sure to support your recommendations with credible resources. Using the assigned readings in this module is a good starting point. Research databases are listed in the Resources area below.

Instructions

As the administrator, you will research then develop a 5-year forecast for the director that explores two emerging technologies in the healthcare arena. You will need to address the ethical and legal implications. The director may not be familiar with these technologies so be thorough in the description of the technologies.

In Microsoft Word, create the 5-year forecast plan. The 5-year forecast plan should be 3 – 4 pages in length and should accomplish these objectives:

  • Evaluate two new technologies in healthcare that reflect future trends; be sure to include visual aids such as graphs or charts.
  • Examine legal implications of implementing these emerging technologies in the healthcare field.
  • Describe any ethical concerns about using emerging technologies in the healthcare field.
  • Include an estimation of costs associated with the new technologies.
  • In an APA formatted reference section, cite supporting credible sources for your recommendation.

NOTE – Be sure the document displays proper grammar, spelling, punctuation, and sentence structure.

Analyze the use of technology to increase cognitive intelligence and knowledge in business.Analyze the use of technology to increase cognitive intelligence and knowledge in business.

Competency

  • Analyze the use of technology to increase cognitive intelligence and knowledge in business.
  • Evaluate the role smart technologies plays in increasing competitive advantages.
  • Analyze technologies that enhance the human experience.
  • Evaluate technology used in digital transactions.
  • Analyze sustainable and renewable resources and their roles in business.
  • Critique the implications of using technology and emerging trends for business.

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

The regional hospital board is dedicated to exploring emerging technology trends in order to remain competitive. You are the Vice President of Innovation for the hospital. You have been asked by the hospital board to evaluate emerging trends in technology for use in the hospital. The technologies to be evaluated are artificial intelligence, smart technology, virtual reality, blockchain technology/cryptocurrency, and sustainable and renewable resources. You must remember that the hospital deal with patients so legal and ethical implications and privacy and security concerns must be addressed. The hospital board is looking for these technologies to provide competitive advantage to support the investment by the hospital.

The hospital board asks that you prepare a report sharing with them the technologies, addressing their concerns, and supporting the investment. Be sure to support your recommendations credible resources. Using the assigned readings in the modules would be a good place to start.

Instructions

You will construct a comprehensive report for the hospital board of the technology, emerging trends, legal and ethical implications, and security and privacy concerns. The hospital board may not be familiar with this technology so be thorough in your description of the technology; use examples where appropriate.

In Microsoft Word, create the report. The report should be 10 – 12 pages in length and should accomplish these objectives:

  • Examine how the hospital can use artificial intelligence to improve inpatient care using the knowledge gained in Module 1.
  • Explore how the hospital can use sensors which are a type of smart technology to better monitor patients in their rooms using the knowledge gained in Module 2.
  • Identify how the human resource department can better train employees on new surgical technologies using virtual reality using the knowledge gained in Module 3.
  • Explore how the patient accounts area can accept cryptocurrency as a method of payment using the knowledge gained in Module 4.
  • Distinguish ways the hospital can use sustainable and renewable resources technologies using the knowledge gained in Module 5.
  • Evaluate the legal or ethical implications for adopting these technologies using the knowledge gained in Module 6.
  • Distinguish any privacy or security concerns resulting from adopting these technologies using the knowledge gained in Module 6.
  • Support how these emerging trends in technology provide a competitive advantage for the hospital using the knowledge gained in Module 6.

NOTE – Be sure the document displays proper grammar, spelling, punctuation, and sentence structure.

top 5 strengths and how you can apply them to your current or future leadership context.

top 5 strengths and how you can apply them to your current or future leadership context.

1. Reading Assignment:

a. Start by watching this 5-minute video that will introduce you to Marcus Buckingham and the strengths revolution http://www.youtube.com/watch?v=qBP82OuG7m4

b. You can also go to https://www.gallup.com/cliftonstrengths/en/home.aspx. There is a green rectangular button in the middle of the web page that says [WATCH VIDEO].

c. Additional videos are available at http://www.bing.com/videos/search?q=marcus+buckingham%2c+playing+to+your+strengths&qpvt=Marcus+Buckingham%2c+Playing+to+your+strengths&FORM=VDRE

d. Read Rath & Conchie: Strengths-Based Leadership (pages 7 – 95 and the 5 additional resources related to your top 5 strengths)2. Activity/Writing Assignments:

a. Read Rath & Conchie: Strengths-Based Leadership (pages 7 – 95).

b. Read Rath & Conchie: Strengths-Based Leadership (the 5 additional resources related to your top 5 strengths)

c. Strengths Paper: Write a 2-page paper that identifies your top 5 strengths and how you can apply them to your current or future leadership context.

i. What are your strengths/advantages?

ii. What are your weaknesses/pitfalls?

iii. How would you address these weaknesses?

iv. How would you use your strengths in leadership?

v. Make sure you attach your Strengths Report from Gallup.com in the “Assignment – Strengths Report” Dropbox.

Assignment Guidelines:

• Minimum 2 pages, double-spaced.

• Must be APA7.

• Make sure to use correct APA in-text citations for paraphrased ideas and quoted text.

Elevator Pitch

Overview

Leaders need input, especially from stakeholders, to move ideas along. Having a unique, insightful product or service is just one step. Project outlines that include careful consideration of a company’s mission, opportunities, and risks can help ideas gain momentum and snowball in significance.

Scenario

Now that you have written a blog post identifying critical elements needed to support the rationale of your project, outlining specifics is key! These specifics will be used in an upcoming elevator pitch you will submit to senior management in Milestone One. Before management will approve exploring the idea for new opportunities and funding, they have key performance indicators (KPIs) you will need to address. Your goal for this assignment is to provide an outline that strongly, yet carefully, presents an argument to move your concept forward.

Prompt

Using MarketLine, Yahoo Finance, and the company’s investor relations webpage, continue your investigation of the company you selected in your Module One blog post. Specifically, look at the company’s profile, financials, and SWOT analysis.

Using speculative strategies, articulate your thoughts. Remember, success may mean revenue to a for-profit business; however, to a non-profit, it may mean a specific outcome, such as donor retention rate, social media engagement, or email open rate.

Draft a project outline that presents a prospective timeline and targeted customer segment of your project. This project outline is a precursor to Milestone One: Elevator Pitch. The KPIs you need to consider and address in your outline are:

  • The intended customer: Describe the intended customer or customer profile for the new product or service.
  • Opportunities in the market: Explain the opportunities in the market based on your research.
  • The financial opportunity: Assess the financial opportunity that the project presents for increasing cash flow and topline revenue.
    • Can it be cash flow positive and profitable? For example, Zappos donates a pair of shoes for every pair of shoes sold. This leads to profit in the long run due to good CSR and company image, but is not immediately profitable.

Your contribution will be evaluated based on the quality of the input.

30-minute business simulation

Several of the largest corporations in the world first started as small family-owned businesses. The strategic decisions they made as a family over the years determined their growth path.

In this course, you will complete three runs of a 30-minute business simulation. In the simulation, you will make decisions to grow an innovative and sustainable family business through several generations while balancing the relationships between the business, your family, and ownership.

For this assignment, complete your first run of the simulation https://forio.com/app/harvard/family-business/#/. This time, as you work through the simulation and make decisions regarding diversification for the company, consider the blue ocean strategy in your approach. Then, complete and submit your journal assignment.

Submit your assignment here. Make sure you’ve included all the required elements by reviewing the requirements and rubric.

Overview

The situations you faced and the decisions you made in the simulation may have affected the company’s success in obtaining a competitive advantage over the market. As you have learned in this module, opportunity-based thinking is critical to blue ocean strategy (BOS). For a business to achieve success through BOS, its leader must have the right mindset and ask deeper questions to hopefully remove bias and false boundaries from their judgment.

Prompt

In this journal, you will reflect on whether and how your decisions in the simulation aligned with blue ocean strategy principles, innovation, and competitive advantage.

Discuss your opportunity-focused mindset during the simulation by answering the questions below:

  • Value creation and competitive advantage: How do you think the company did regarding value creation and gaining a competitive advantage across generations?
  • Thought process: Did you “think differently” while you made your decisions in the simulation? Explain why or why not.
  • Discovery: What have you discovered or learned after completing the first round of the simulation?

Guidelines for Submission

Submit a Word document of one to two pages using 12-point Times New Roman, one-inch margins, and double spacing. Sources should be cited according to APA style.

describe Agile and the project characteristics of Agile

Your supervisor in the PMO is excited by the success stories being reported about the use of Agile. You are asked to create a short slide presentation to be presented by your supervisor at the next monthly operations Program Management Review (PMR). You are instructed to keep it short. You will write a more detailed narrative in the speaker notes that accompany the slides. You will describe Agile and the project characteristics of Agile and explain why it is a good thing for the company to pursue in future projects instead of traditional waterfall project management. The VP of Operations and the directors of the various divisions within Operations are the target audience for this presentation.