1. Which of the following is true of annuities? A. An ordinary annuity is an equal payment paid or received at the beginning of each period B. An annuity due is a payment paid or received at the beginning of each period that increases by an equal amount each period C. An annuity dad is an equal stream of cash flows is paid or received at the beginning of each period D. An ordinary annuity is an equal payment paid or received at the end of each period that increases by an equal amount each period 2. Strikes, lawsuits, regulatory actions are all examples of A. diversifiable risk B. market risk C. economic risk D. systematic risk 3. rate of interest is the actual rate charged by the supplier of funds and paid by the demander of funds A. Nominal B. Real C. Risk-free D. Inflation 4. firm with limited dollars available for capital expenditures is subject to A capital dependency B capital gains working capital constraints D capital rationing 5. If bankruptcy were to occur. would have the first claim on assets A preferred stockholders B. bondholders C common stockholders D. account receivables' holders 6. Generally, an increase in risk will result in A. a lower required retum ar interest rate B. a higher required retum or interest rate Ca higher risk-frce rate D. a lower risk-free rate