Fin 419

 

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?