Some Argue That Those with a College Education Do Not

question 10

Multiple Choice

Some argue that those with a college education do not earn more because they know more but because

• A)the college education teaches them to conform to society.
• B)the degree indicates that they are highly self-motivated.
• C)they develop good business connections while in college.
• D)the college education teaches them to conform to business culture.
• E)professors get them good jobs.

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Definitions:

Fixed Assets

Long-term tangible assets, such as buildings and machinery, used in operating a business and not expected to be consumed or converted into cash within a year.

Dividend Discount Model

A method used to estimate the value of a company's stock by discounting predicted dividends to present value.

Constant-Growth

A valuation model assuming a steady rate of dividend growth for a stock.

Required Return

The minimum expected return investors demand for a particular investment, reflecting its risk level.