Part 4: Stock Valuation and CAPM Draft (25 Points) This week you will draft Part 4 of the final Capstone Project. Compute the intrinsic value of the two stocks analyzed for Part 3 and compare the values to the reported market stock price in order to determine if the price is right. For Part 4, you should do the following: Compute beta of each stock using regression analysis. Use data from 1/1/1996 1/1/2013. Compute each stocks required rate of return using the Capital Asset Pricing Model (CAPM) and beta from above. Compute the intrinsic stock price using the Gordon Growth Model and the required rate of return. Discuss whether the stocks are undervalued or overpriced. Discuss the models used and their limitations, if any. What are analysts opinions of the firms stock value? Discuss the discrepancies between the computed and actual stock prices. Your wellwritten draft should meet the following requirements: Be two to three pages in length for the analysis and explanations Be formatted according to the CSUGlobal Guide to Writing and APA Requirements Include Excel spreadsheet with all computations this spreadsheet should be embedded in the Word document as an appendix after your analysis and explanations Include a minimum of three credible references. The CSUGlobal Library is a good place to find these references