A cover letter is the professional communication .
Answer and Explanation:
The computation is shown below:
a. The expected value of payout arise from emergency is
= 0.01 × $67,500
= $675
b. The expected value of payout arise from capped coverage insuance is
= (0.9 × $500) + (0.09 × $2,500)
= $675
c. The risk averse shows the minimum exposure with respect to the swings of the income or there would be the loss in the income. Since the payout amount is same in both the cases so here we considered option B
Answer:
1. Medium of exchange, 2. Unit of Account and 3. Store of value
Explanation:
Please see attachment
Answer:
The price of the stock is $38.33
Explanation:
The dividend growth is zero on a preferred stock thus its dividends are just like a perpetuity as the stocks have no defined life. The formula for the price or value of a perpetuity or the zero growth model is,
P0 = D / r
Where,
D is the dividend
r is the required rate of return
Thus, the price of the stock is:
P0 = 3.22 / 0.084 = $38.33
