QUESTIONS: 1) Assuming that the risk-free rate of return is currently 3,2%, the market risk premium is 6% whereas the beta of HelloFresh SH. stock is 1.8 , compute the required rate of return using CAPM. 2) Compute the value of each investment based on your required rate of retum and interpret the results comparing with the market values. 3) Which imvestment would you select? Explain why using appropriate financial larten (language). 4) Assume HelloFresh SH's CFO Mr. Christian Gaertner expects an eamings upturn resulting increase in growth (rate) of 1%. How does this affect your answers to Question 2 and 3 ? 5) AACSB Critical Thinking Questions: A) Companies pay rating agencies such as Moody's and S\&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so is strictly voluntary. Why do you think they do it? B) What are the difficulties in using the PE ratio to value stock? As a University of Bahrain Business School graduate, you have finally opened a brokerage account for BHD20,000 (BHD/ 2,4391 as of 18 Now 2023) with Mubasher Financial Services that provides regional & international brokerage services in the Middle East for institutional & retail investors and are ready to make your first investment in Borse Frankfurt where you have special interest in German firms. You have the following 3 alternathes for investing that money: Linde plc. (\#uN) semi-annual bonds which have a par value of Cl10 and a coupon interest. rate of 4%, are selling for C103,8 and matute in 5 years. Bayer AG (AM) preferred stock is paying a dividend of 4,75 and selling for 51,09. HelloFresh SH (uHFG) common stock is selling for 21.68. The stock recently paid a 1.32 dividend, and the firm's EPS have increased from 1.53 to 2.10 in the past flive years. The firm expects to grow at the same rate for the foreseeable future. Your required rates of retum for the first two imvestments are 3,5% for the bond, 8$ for the preferred stock, Using the information given, abswer the following questions with Mlarmefl (Asyou may notice. your textbook, in every chapter, encouractes you to use Excel spreadsheets to make spund financial decisions)