Name That Company

In the 1800s, the son of a German immigrant sawmill owner founded me in Indiana to operate a general store, furniture companies, a bank, a newspaper and the Batesville Coffin Co. In 1929, my Hill-Rom subsidiary revolutionized the hospital furniture industry by replacing cold steel with wood. Today I’m a holding company for three wholly owned and autonomously managed companies: Hill-Rom, Funeral Services Group and Forethought Financial Services (which markets funeral planning financial products), all leaders in the markets they serve. I rake in about $2 billion per year, and have increased my dividend for 30 consecutive years. Who am I? (Answer: Hillenbrand Industries)

Know the answer? Send it to us with Foolish Trivia on the top and you’ll be entered into a drawing for a nifty prize! The address is Motley Fool, Box 19529, Alexandria, Va. 22320-0529. Send questions for Ask the Fool, Dumbest (or Smartest) Investments (up to 100 words), and your Trivia entries to Fool@fool.com.

The price of college

A college education can cost you a few arms and legs, but it doesn’t have to. A key determinant of a college’s costs is whether it’s a public or private institution. A Tulane education, for example, costs more than 10 times a University of Florida education. Opting for a public school doesn’t necessarily doom a student to less success in life, either.

A National Bureau of Economic Research report described a study that compared the earnings of graduates of elite schools to earnings of those who were accepted by these schools but chose to go elsewhere. It found that graduates of more selective schools did not earn more than graduates of less prestigious schools. In fact, a better indication of future earnings was where the students applied, not where they attended.

Princeton University economist Alan Krueger, who co-authored the study, noted: “It appears that student ambition, as reflected in the quality of the school to which he or she applies, is a better predictor of earning success than what college they ultimately choose or which college chooses them.” This was called the “Steven Spielberg Effect,” because the highly successful filmmaker was rejected by two of the best film schools in the country.

How much can you save with a public college education? According to The College Board, for 2002-2003 the average annual tuition cost for a four-year public college is $4,081 (up 9.6 percent from last year), compared to $18,273 (up 5.8 percent) for a four-year private college. Many elite schools cost $30,000 or more.

Still, don’t write off big-ticket schools for financial reasons. You could end up with a financial aid package that makes an elite school cheaper than a public university. According to The College Board, financial aid to students topped $90 billion in 2002-2003, up about 11 percent over the previous year. At four-year private colleges and universities, more than 75 percent of students receive some type of financial aid. (It’s 60 percent for four-year public schools.)

A college education may be more affordable than you think. Learn more at www.fool.com/csc/csc.htm and www.collegeispossible.org.

Gee, GE

General Electric (NYSE: GE) stock has recently been trading near five-year lows, piquing the interest of many investors.

The complex conglomerate reported satisfactory third-quarter earnings this month, thanks largely to strong results from its NBC unit and the sale of its GXS Internet commerce business. GE’s revenues rose 11 percent to $32.6 billion, nearly enough to cover retirement payments to ex-chief Jack Welch. (Oh, we jest.) Net income grew 25 percent to $4.1 billion.

The performance of the different business units varied in the quarter. The plastics, lighting and aircraft engine divisions experienced declines, while profits from sales of appliances grew 21 percent, compared to a year ago, and NBC’s earnings shot up 59 percent. The power systems unit increased profits 16 percent, down from the second quarter’s stellar 66 percent growth.

From here, GE is facing a difficult 2003. Its third-quarter results really banked on the success of one or two of its minor business units. The major divisions remain affected by weak economic conditions.

GE recognizes that the current business climate spells trouble for 2003 unless it can keep lean and cut costs even more. CEO Jeff Immelt recently told investors and analysts that GE would grow next year, but that it would aggressively cut costs and restructure units in order to get the job done.

The stock is already trading at attractive levels, but it may fall further.