An example of a _____ is when banks lend too much money to over-extended companies, expecting bail-out help from their government.

Which of the following actions of the U.S. government could not be considered part of fiscal policy?

A) Federal Reserve actions to adjust interest rates B) Raising the capital gains tax rate C) Construction of a new dam D) Providing job training for the unemployed

Sola Cola Corporation is undertaking a capital budgeting analysis. The rate on 10-year U.S. Treasury bonds is 3.60%, and the return on the S & P 500 index is 11.6%. If the cost of Sola Cola's common equity is 19.6%, calculate their beta

A) 1.69 B) 5.4 C) 2.0 D) 1.38