Briefly discuss your understanding of risk return and capital structure to the Law of One Price.

Part 1Briefly discuss your understanding of risk return and capital structure to the Law of One Price.Part 2Responses to each question below :1. When should the WACC and the APV be used? How do personal taxes affect the use of these two methods? Use examples when explaining your answer. 2. Explain the use of IRR and cash multiples as alternative valuation metrics, and discuss the drawbacks of those methods. In your answer, include how sensitivity analysis affects the evaluation process.