For Most Students,the Largest Single Cost of a College Education

question 117

Multiple Choice

For most students,the largest single cost of a college education is

• A)the wages given up to attend school.
• B)tuition,fees,and books.
• C)room and board.
• D)transportation,parking,and entertainment.

---

Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. It represents the average rate that a company is expected to pay to finance its assets.

Cost of Debt

The effective rate that a company pays on its borrowed funds from financial institutions and other sources.

Tax Effects

The impact of taxation on the financial decisions and outcomes of individuals and businesses, including tax liabilities, benefits, and incentives.

Risk-Free Rate

The risk-free rate is the theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities.