The Rates of Return on High School and College Educations

question 126

Multiple Choice

The rates of return on high school and college educations have

• A) not been estimated, but are assumed to be high.
• B) been estimated as negative, but these are still good options for most.
• C) been estimated at 50 percent per year.
• D) been estimated at between 5 to 10 percent per year.
• E) been estimated to be essentially zero.

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Definitions:

Equity

Equity represents an owner's share in the assets of a company, remaining after deducting liabilities.

Debt

Debt is an amount of money borrowed by one party from another, under the condition that it is to be repaid at a later date, usually with interest.

Restrictive Covenants

Provisions in a contract or bond agreement that limit certain actions of the borrower, to protect the interests of the lender.

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.