This study examined the possible influence of socioeconomic background and academic preparation of freshmen entering University of California Davis in Fall 1988 on persistence to graduation. Most academic data for the study came from a longitudinal database of undergraduates enrolled at Davis. Socioeconomic background data came from a freshman survey conducted prior to arrival on campus. The results revealed distinct patterns among racial or ethnic groups entering Davis: (1) Asian freshmen enter the most academically well-prepared group and usually from relatively modest socioeconomic backgrounds and graduate at the highest rate (76 percent); (2) white freshmen come academically well-prepared and from the most favorable socioeconomic background (73 percent graduate); (3) Filipino freshmen generally come from moderately affluent, well-educated backgrounds, are fairly well-prepared for University study (62 percent graduate); (4) Chicano freshmen come from the least affluent and lowest levels of formal education (57 percent graduate); (5) Black freshmen enter the least well prepared and are from families at the low end of the socioeconomic spectrum, (41 percent graduate). Overall, the data indicate that academic preparation for college-level work appears to be a critical factor influencing persistence to graduation. As academic preparation increases, the likelihood of degree completion increases. Included are seven tables and 21 references. (Author/JB)