A Cover Letter Is Most Appealing If It

question 26

Multiple Choice

A cover letter is most appealing if it

• A) begins by addressing the reader by name.
• B) is general and is addressed to Ladies and Gentlemen or To Whom It May Concern.
• C) is addressed to a job title such as Personnel Manager or to a department such as Human Resources Department.
• D) omits the salutation altogether.

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Definitions:

Component Cost

The cost related to each source of capital, such as debt and equity, that a company uses for funding.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Cost of Retained Earnings

The opportunity cost for shareholders for having the company retain the earnings instead of distributing them, often considered in investment and dividend decisions.

Risk Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield on government bonds.