19. An "annuity due" is one with cash flows: A) not yet received B) that are both inflows and outflows. C) that are owed to another person. D)) at the beginning of each time period. interest rates. 20. The interest rates listed in The Wall Street Journal are considered A) Real. B) Risk-adjusted. C) Nominal. D) Forward. 21. Using the multiplicative form of the Fisher Model, what is the nominal rate of interest if the pure rate of interest is 3 percent, inflation premium is 4 percent, and the risk premium is 6 percent? A) 12.99% B) 13.00% C) 13.55% D) 7.12% Using the multiplicative form of the Fisher Model, what is the risk premium percent if the nominal rate is 10 percent, the pure rate is 2 percent, and the inflation premium is 4 percent? A) 2.80% B) 2.67% C) 2.00% D) 2.05% 22. 23. If the nominal rate of return for Keller Corporation is 15%, the pure rate of interest is 3%, and the risk premium, is 5%, what is the inflation premium (using the multiplicative form) for Keller stock? A)0%. B) 6.33%. C)7%. D) 8.15%. 24. Pro-forma financial statements are: A) B) Financial statements that have been audited Financial statements that do not balance Projected financial statements D) Competitive financial statements 25. A variable cost account is: An account on the income statement that changes with sales without specific management action. An income statement account that changes with sales when management takes a specific action. A balance sheet account that changes with sales without management specific action A balance sheet account that changes with sales when management takes a specific action A) B D)