1. An investor purchased a stock with a share price of $50 at the beginning of 2019. At the end of the year the price went down to $55 and a dividend of $2.5 per share was paid. Calculate the total holding period return of the investor. 2. Consider a firm whose stock price is $50. It pays an annual dividend of $3 per share; it's last year's earnings per share were $11. a. Calculate the dividend yield. b. Calculate the price to earnings (P/E) ratio. c. If another firm from the same industry has P/E ratio of 15, which stock is more attractive to buy? Why? 3. Describe briefly the IPO process based on the slides entitled how firms become public