4. Bed Bath Beyond recently has announced that it won't be able to pay its interest and indicated that it might file for bankruptcy. What would be a good valuation method to evaluate this business? 5. AWK (American Water Work), a public trade water utility company, has a Beta of 0.54. Let's assume in long term, 10 year Treasury yield on average will be 3.89%. What is the required rate of return on this company using CAPM? Please use historical average market risk premium ( 4.2%) to answer this question. Adj. Beta. 6. Suppose AWK paid $2 dividend in the past 12 month and its dividend is supposed to grow at 2% per year for ever. What would be a reasonable estimate of AWK's stock price based on the Dividend Discount Model? Please use the discount rate from Problem 5. 7. Now assume AWK's dividend will grow at 2.5% in the first three years and after three years it will grow at 2%. What would be a reasonable estimate of AWK's stock price based on the two stage dividend discount model? Please use information from Problem 5 and 6