Question 3 (Mandatory) (8 points) Listen What is a benefit of using debt financing? Cheaper than using equity due to ability to pay back over time Debt is more readily accessible to firms Investors prefer higher levels of debt Firm ownership does not have to relinquish control of the company Question 4 (Mandatory) (8 points) Listen The successful use of options requires correct analysis of which of the following two market functions? Magnitude of pricing change and timing of market correction Magnitude of pricing change and amortization values Time value of money and amortization values Time value of money and timing of market correction Question 5 (Mandatory) (8 points) Listen Why have many sport organizations eschewed the use of options? More accurate pricing methods were achieved through dynamic pricing Options decreased final revenues after further examination Lack of demand for options Companies selling options went out of business