P4-4: How is the compounding process related to the payment of interest on savings? What is the general equation for future value? P4-11: How can the present value interest factors for an ordinary annuity be modified to find the present value of an annuity due? P12-2: What is the operating breakeven point? How do changes in fixed operating costs, the sale price per unit, and the variable operating cost per unit affect it? P12-6: What is a firm’s capital structure? What ratios assess the degree of financial leverage in a firm’s capital structure? P12-8: What is the major benefit of debt financing? How does it affect the firm’s cost of debt? .

1. P4-4: How is the
compounding process
related to the payment of interest on savings? What is the
general equation for future value?
P4-11: How can the present value interest factors for an
ordinary annuity be modified to find the present value of an
annuity due?
P12-2: What is the
operating breakeven point?
How do changes in fixed operating costs, the sale price per
unit, and the variable operating cost per unit affect it?
P12-6: What is a firm’s
capital structure?
What ratios assess the degree of financial leverage in a firm’s
capital structure?
P12-8: What is the major benefit of debt financing? How does it
affect the firm’s cost of debt?