Which of the following is true about valuations?

• Valuations are unbiased estimates of an asset's worth.
• Valuations are inexact due to the difficulty of predicting the future.
• A single asset has the same value for all companies.
• Valuations complicate decision making because measurements are imprecise.

Which of the following is a reason for economists typically disputing claims of economic impact made by sport organizations?

• Failure to include cost of the project.
• Organizations fail to quantify psychological impact of team, thus lowering potential value.
• Teams are privately held and therefore the total financial impact cannot be estimated.
• Lack of reputable consulting or accounting firms willing to conduct the study.

What is the 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.