Answer: A. Traditional Model
Explanation:
Strategic planning enables a company to properly plan out what their long term goals and visions are which would help them in operations because it would give them a view of what they are working towards.
A key part of strategic planning involves knowing the operating environment so as to be able to plan better. If this is not well know, the company should go with a traditional/ basic model that would enable them to plan with minimal knowledge and experience until they know better.
Answer:
No tax penalty will apply with respect to the excess distribution
Explanation:
Data provided in the question:
Age of Justin = 66 years
Qualified medical expenses in 2019 = $6,000
Archer MSA distribution taken during the year = $8,000
Now,
No tax penalty applies to with respect to the excess distribution for an individual whose age is over 65 years on the records.
Here,
The age of Justin is 66 years i.e over 65 years.
hence,
No tax penalty will apply with respect to the excess distribution
Answer:
the weightage average cost of capital of the firm is 13.50%
Explanation:
The computation of the weighted average cost of capital is shown below;
WACC = Cost of debt × weightage of debt + cost of equity × weightage of equity
= 10% × ($600,000 ÷ $2,000,000) + 15% × ($1,400,000 ÷ $2,000,00)
= 3% + 10.5%
= 13.5%
hence, the weightage average cost of capital of the firm is 13.50%
