Which of the Following Is an Argument in Favor of School

question 67

Multiple Choice

Which of the following is an argument in favor of school vouchers?

• A) If parents cannot pay for their children to go to private schools,the state should pay.
• B) Spots at the best schools would be given to students who are not educationally prepared.
• C) If schools competed for students,the quality of education would suffer.
• D) In order for schooling to be equal for all children,parents should be able to decide where their children go,regardless of their ability to pay.

Understand the components of a firm's capital, and their relative costs.

Calculate the after-tax cost of debt and understand its influence on the weighted average cost of capital (WACC).

Apply the dividend growth model to estimate the cost of common equity.

Differentiate between book value and market value and understand the relevance of each in calculating WACC.