$1$C$-$Stock Performance Profile $($Week $1$ and $2)$

Objective: Describe the returns generated for shareholders over the past five years.

Communicate the returns to shareholders compared to the industry and the market. The correct market proxy would be the Russel $3000$ since we are focused mostly on medium size companies.

What is the return over the past five years? Here you can show the compound annual growth rate over the $5$ year period as well as by year. Compare these returns to the industry, or sector performance, and the market. Comment on any significant differences from year to year as well as the five$-$year performance. For this section, we are focused mostly on the changes in price. This is referred to as capital appreciation $($capital gain or loss$).$ Total return for an investor is comprised of capital appreciation and dividend yield. We are less focused on the dividend yield as substantial analysis on dividends will be required in another section. So focus on the capital appreciation mostly in this section, but as you are telling a story, you may want to note the additional return for investors from the dividend yield in your commentary.

Formula for Compound Annual Growth Rate $=$CAGR$=(E\frac{V}{B}V{)}^{(\frac{n}{1})}-1$

EV$=$Ending Value of the investment. $BV=$ Beginning Value of the investment. $n$ is the number of compounding periods over which the growth rate is calculated. This is typically the number of years.

Reminders on where to find the information:

Company's Investor Relations Website, Annual Reports and Proxy Statements, SEC Filings: Explore the SEC's EDGAR database $($for U$.$S$.$ companies$).$ Companies are required to file various documents with the SEC, including $10-K$ annual reports and $10-Q$ quarterly reports, which may contain information about the company's stock structure. Finally, Financial News Websites, Specialized Data Providers such as Capital IQ which is on the Elibary.

Analyst reports on your company can be found in Investext on the Elibrary. Analyst coverage of your company can easily be found in a financial website like Yahoo Finance. Look up the ticker symbol, and then go to the Analysis tab.

The proxy statement is typically filed with the U$.$S$.$ Securities and Exchange Commission $($SEC$)$ using Form DEF $14$A$.$ The Fotn DEF $14$A includes information about the company's board of directors, executive compensation, proposals to be voted on at the annual meeting, and details about how shareholders can cast their votes. It also provides information about the company's corporate governance practices, including whether it has a dual$-$class stock structure or any other governance$-$related matters. The proxy statement is an

important document for shareholders to THE NAME OF THE COMPANY IS H&R BLOCK