1. How is the compounding process related to the payment of interest on savings? What is the general equation for future value?
2. How can the present value interest factors for an ordinary annuity be modified to find the present value of an annuity due?
3. 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?
4. What is a firm's capital structure? What ratios assess the degree of financial leverage in a firm's capital structure?
5. What is the major benefit of debt financing? How does it affect the firm's cost of debt?