The management of Ark Industries wants to analyze the performance of the company’s stock in the stock market. They want to compare the stock performance with Apex Inc, a strong competitor in the industry, and the market index. The following data is available for managerial finance analysis. Year Ark Industries Apex Incorporated Market Index Capital gain/loss Dividend Purchased Price Capital gain/loss Dividend Purchased price Rate of Return 2020 $6.79 $2.23 $23.53 $5.80 $3.52 $79.32 51.8% 2019 -$5.08 $2.65 $28.61 $5.00 $3.65 $74.32 1.30% 2018 $13.40 $2.73 $15.21 -$12.80 $3.45 $87.12 11.90% 2017 $2.58 $2.57 $12.63 -$8.00 $3.47 $95.12 13.90% 2016 -$0.58 $2.23 $13.21 $10.88 $3.55 $84.25 15.80% *Capital gain = difference between ending price and beginning price Use the data given to calculate the annual returns for Ark Industries, and Apex Inc during the 5-year period. Calculate the historical average returns for Ark Industries, Apex Inc., and the market index during the 5-year period. Calculate the standard deviation of the returns for Ark Industries. An individual investor, James Bond needs an extra return of 6.0% before he will take on the stock market’s risk to invest in Ark Industries. If the risk-free rate on long-term Treasury bonds is 5.0%. what would be the required return on the market? James Bond wants to determine the required rate of return on two stocks (stock A and stock B) that he just added to his portfolio. The following information is available: Market rate of return = 11.0% Risk free rate =5.0% Beta for stock A= 0.77 Beta for stock B = 0.99 Use the Security Market Line (SML) equation to calculate the required rate of return for stock A and stock B. Richard Morgan, another individual investor wants to purchase four stocks for his portfolio. The expected return, portfolio weights, and the betas of the stocks are given below: Stocks Beta Portfolio weight Expected return Goodman Industries 0.70 30% 9.20% Renfro Inc. 0.79 20% 9.74% Heath Inc. 1.10 30% 11.60% Lincoln Inc. 1.44 20% 13.64% Calculate the portfolio beta. Calculate the portfolio’s required return. Goodman Industries is expected to pay a $4.50 per share dividend at the end of this year (i.e., D1 = $4.50). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock is, rs, is 9.2%. What is the estimated value per share of Goodman stock? Renfro Inc. is expected to have free cash flow (FCF) of $105 million next year and an expected constant growth rate of 5% thereafter. The weighted average cost of capital (WACC) for the company is 9.0%. Using the constant growth model, estimate the value of operations for Renfro Inc. The most recent free cash flow (FCF) for Heath Inc. was $200 million, and the management expects the free cash flow to begin growing immediately at a 7% constant rate. The cost of capital is 12%. Using the constant growth model, determine the value of operations for Heath Inc. Heath Inc. balance sheet shows that it has $10 million short-term investments, $15 million in notes payable, $60 million in long-term bonds, and $15 million in preferred stock. Heath has 60 million of shares outstanding. Calculate the following: total intrinsic value for Heath Inc. intrinsic value of equity for Heath Inc. intrinsic stock price per share for Heath Inc. Distinguish between call option and put option. The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual risk- free rate is 5%. Find the price of a call option on the stock that has an exercise price of $55 and that expires in 1 year. (Hint: Use daily compounding.)

Write a 300-word strategy evaluation report on a chosen company. Research from the Internet and from printed information can enhance strategy evaluation. Competitors' performance information can help bring perspective to an organization's performance evaluation. It is also important to look at changes, externally and internally, as an indicator for the need to modify strategy. By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:Competency 1: Evaluate key elements of the strategic planning process.Identify strategic information on competitors using appropriate research.Recommend strategies based on strategy evaluation research.Competency 3: Apply a sequential process for developing and implementing strategies, goals, objectives, and tactics as part of the strategic plan implementation.Identify new strengths and weaknesses and opportunities and threats.Interpret the effectiveness of a company's strategies.ContextA strategy evaluation framework can help achieve annual and long-term objectives. Evaluation allows an organization to use internal strengths and to capitalize on external opportunities as they surface, defending against market shifts and correcting internal weaknesses before they become a problem. Successful organizations formulate, implement, and evaluate strategies intentionally and continually evaluate their strategic position—shaping their future intentionally as opposed to being shaped by external forces. Strategic management allows an organization to make effective decisions, execute those decisions efficiently, and take corrective action. The key to effective strategy evaluation is the integration of intuition and analysis. Strategic management is first a people process and a mechanism for fostering organizational communication. The planning process is more important than the written plan. In fact, the written plan is only a snapshot and because of the rapid rate of change, leaders must plan continuously.SHOW LESSStrategic management also includes formulating, implementing, and evaluating organization-wide decisions that enable an organization to achieve its objectives (David, 2014). Formulation includes the organization's mission, internal and external assessments, and the establishment of strategies. Implementation includes the creation of short-term objectives and allocation of resources to achieve strategies. Evaluation reviews performance and recommends corrective action. There are many benefits to strategic planning, including financial and competitive sustainability in a global market. Globalization, e-commerce, and attention to the environment have become important strategic concerns. Engaging employees in the strategic management process can facilitate the implementation of a well-planned strategy and enhance competitive advantage. Through this course, you have learned about the importance of mission and involvement in a sequential planning process.ReferenceDavid, F. R. (2014). Strategic management: A competitive advantage approach, concepts & cases (15th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.Questions to ConsiderTo deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.Consider market segmentation and product positioning as a strategy-implementation tool.Consider the nature of research and development in strategy implementation.ResourcesSuggested ResourcesThe following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.Library ResourcesThe following e-books or articles from the Capella University Library are linked directly in this course:Tovstiga, G. (2011). Strategy in practice: A practitioner's guide to strategic thinking. Hoboken, NJ: Wiley.Course Library GuideA Capella University library guide has been created specifically for your use in this course. You are encouraged to refer to the resources in the BUS-FP4015 – Strategic Planning and Implementation Library Guide to help direct your research.Bookstore ResourcesThe resources listed below are relevant to the topics and assessments in this course and are not required. These resources are available from the Capella University Bookstore. When searching the bookstore, be sure to look for the Course ID with the specific –FP (FlexPath) course designation.David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts & cases (16th ed.). Boston, MA: Pearson.Assessment InstructionsPreparationSelect an organization to analyze. Ideally, the company you choose will be a familiar one and one to which you have easy access, such as your place of employment or a company close to where you live. You may use the same organization for other assessments in this course.DeliverableComplete the following:Use the Capella library and the Internet to locate three articles written in the last six months, or as current as possible, about the industry of your selected organization.Consider the following questions as you do your research: What new opportunities and threats, or strengths and weaknesses seem to be emerging in this industry?Do you feel that your selected organization is using effective strategies?What recommendations would you offer?Write a 300-word document titled "Strategy Evaluation Report" in which you include the following:Summarize your organization's strategy and performance in the current year.Identify strategic information about your organization's competitors.Identify new opportunities, threats, strengths, and weaknesses that seem to be emerging in the selected organization's industry.Interpret the effectiveness of your company's strategies.Recommend strategies based on strategy evaluation research.Use APA-formatted in-text citations for information you take from the articles, and provide complete references for all articles.

Ella is a trained paralegal who works for ABC Bank in Tucson, Arizona. One day, Barry walks into the bank to apply for a mortgage loan to purchase a new house. Ella and Barry have a long conversation about Barry taking out a mortgage. During the conversation, Barry is concerned that were he to default on his loan, his credit would be destroyed.In response, Ella tells him:Don’t worry about it. If you don’t pay your loan, the only remedy the bank has is to foreclose on the house. The bank cannot go after you personally and your credit score will be unaffected. I’ve been dealing with this issue for years and I’m telling you that this is the Arizona law on the matter. Unfortunately, it turns out that Ella was incorrect. When Barry defaults on his loan the next year, his credit is badly hurt.Barry comes to your office and meets with your supervising attorney, Rick, to discuss the possibility of suing Ella based on her statement to him and his reliance on it. Because Barry sincerely believed that what she was saying was true, Rick immediately rules out the possibility of suing her for fraud or misrepresentation. (Note: This means you should NOT deal with the possibility of suing him for fraud or misrepresentation or the like!)Instead, Barry says to Rick, “Well, Ella isn’t a lawyer. Isn’t it wrong for her to tell me what the Arizona law is when she’s not even a lawyer?” Rick replies, “Well, I know that it’s unethical and even criminal to practice law without a license, but I don’t know if you can sue someone for unauthorized practice of law. I’ll have my star paralegal look into that.”After Barry leaves, Rick asks you to research this question, i.e., whether Barry can sue Ella based on her unauthorized practice of law, and to get back to him with an answer. Please prepare a properly researched essay to answer Rick’s question. Please refer to Arizona Supreme Court Rule 31.An IRAC-style essay is appropriate for this assignment.