IRAC stands for Issue, Rule, Application, Conclusion
I'll just put out issues.
James Jones - corruption, extortion, and blackmail
Tom Cruise - health violations, bribery
Both conducted under the table negotiations.
I think it' Price but i'm not sure
Answer:
The stock is undervalued. As the required rate of return (6.5%) on market is less than the actual return (7%), the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Explanation:
To check if a stock is over valued, undervalued or correctly valued, we simply compare the required rate of return on a stock as measured by CAPM with the actual return on the stock.
We can calculate the required rate of return using CAPM equation. The formula for required rate of return under CAPM is,
r = rRf + Beta * (rM - rRF)
Where,
- rRf is the risk free rate
- rM is the return on market
r = 0.05 + 0.5 * (0.08 - 0.05)
r = 0.065 or 6.5%
As the required rate of return on market is less than the actual return, the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Answer:
Variable cost per hour= $4.825
Explanation:
Giving the following information:
Wallace determines that the high and low costs are $25,830 and $18,414, respectively, and the values for the cost driver are 3,495 and 1,958 hours, respectively.
<u>To calculate the unitary variable cost under the high-low method, we need to use the following formula:</u>
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Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (25,830 - 18,414) / (3,495 - 1,958)
Variable cost per unit= $4.825
