QUIZ TIME!!!

How does a manager measure a firm’s RoI (Return on Investment)?

How is the RoI measured at your firm?

Do you know your firm’s or your division’s breakeven point?

Do you also know it is easy to compute the breakeven point?

Do you know that “selling below cost” could be a very profitable strategy for your company?

When your company manager is discussing, Discounted Cash Flow (DCF), do you really understand what he or she is saying and are you comfortable discussing DCF?

Could you explain what is the Net Present Value (NPV)?

Do you understand “Rate of Return”?

Do you know what is an ideal financial profile of a company?

Should you manage for cash flow or for profit?

Are they the same thing?

Did you know that two firms with the same RoE - Return on Equity - may have wildly different operating profits?

If the “Cost of Capital” is not the rate of interest charged by banks, then what IS the cost of capital?

IF YOU OR OTHER MANAGERS AT YOUR FIRM ARE NOT SURE OF THE CORRECT ANSWERS TO THESE QUESTIONS, THEN WHY NOT ATTEND PROFESSOR GOUDZWAARD’S FINANCE COURSE?