If a Potential Investor Asks You About the Sales Cycle

question 5

Multiple Choice

If a potential investor asks you about the sales cycle for the business what should you do?

• A) Provide some general responses
• B) Specify the number of days in the sales cycle
• C) Immediately respond that it all depends
• D) None of the above

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Definitions:

Per Share FCFE

The amount of free cash flow to equity (FCFE) available to shareholders divided by the number of outstanding shares.

Required Rate of Return

The minimum expected return by an investor for investing in a risky asset, considering the risk involved.

FCFF

Free Cash Flow to Firm; a measure of financial performance that expresses the net amount of cash that is generated for the firm, inclusive of financing and debt service.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability that excludes the effect of financial and tax decisions.