The management of Ark Industries wants to analyze the performance of the companys 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

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%

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:

1. Total intrinsic value for Heath Inc.
2. intrinsic value of equity for Heath Inc.
3. intrinsic stock price per share for Heath Inc.
4. 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.)