The article explores how Canadian companies make financial decisions, like choosing investments and estimating costs. Canadian firms prefer using net present value to evaluate projects, unlike their U.S. and European counterparts who rely more on internal rate of return. Canadian managers often use their judgment to assess risks and forecast cash flows, rather than using specific models like the capital asset pricing model. When it comes to deciding how to finance their operations, Canadian companies tend to follow the trade-off theory over the pecking order theory. The size of the company and the CEO's education level also play a role in these decisions.