This is my second pass going over Eisenbud for parts that I did not fully understand in the first round. This is chapter 1, Section 1.3 Invariant theory. It is related to problem of invariants of binary forms of degree $d$
It is suggested that consider $F=\sum_{i\leq d}x_is^{d-i}t^i$ general degree $d$ form in variables $s,t$ with $x_i\in k[x_0,\dots, x_d]$. Consider $s=as'+bt',t=cs'+dt'$ transformation on $s,t$. One obtains a new linear combination of $x_i$ with a different set of coefficients. If one restricts to matrix formed by $a,b,c,d$ in $SL_2(k)$, one obtains a $SL_2(k)$ action on $k[x_0,\dots, x_d]$.
Q1. Which ring is $F$ lying here? $k[x_0,\dots, x_d,s,t]$ or $k[x_0,\dots, x_d]$? I guess one transform $F$ and obtain a new coefficient of $x_i$ and this defines an action of $SL_2(k)$ on $k[x_0,\dots, x_d]$. I think this is what author means.
Q2. Why it is natural to consider $F$ here, rather than $x_0s^d$ or other degree $d$ terms in terms of $s,t$ as coefficient of $x_i$?
Q3. What is the significance of $k=C$(complex number) here? Diagonalizability or similarity?
Q4. What is the significance of this part of theory in relation to geometry?