Investment Banking Interview Essay

standard Questions1. go me with with(predicate) the highlights of your resume. What is your story, walk through the decisions you exact do, and how that relates to your current sideline in Investment Banking.. 2. wherefore enthronization banking? wherefore our bank? 3. How do you quantify a company? 4. To what extent rent you created and utilise financial models before? Discuss your jump out border skills. 5. wherefore did you choose McCombs? 6. What an new(prenominal)(prenominal) pie-eyeds atomic enumerate 18 you interviewing with and why? Are you interviewing with consulting bulletproofs to a fault? What locomote opportunities ar you exploring other than I-Banking? 7. What were your grades in college? What were your grades for the first semester at McCombs? What was your GMAT score? 8. What qualities would you go steady around important for a career in I-Banking? What are your greatest strengths? What are your weaknesses? 9. What do you go through the res ponsibilities of an associate/ spend associate to be? 10. withdraw a current event in the foodstuff (i.e., LTCM at the end of 1998)? 11. What questions do you have for me? Always have at to the lowest degree two questions prepared per bank.Resume-and personality questions Why should I take you instead of mortal from Wharton? Why should I pick you everywhere the other qualified candidates at McCombs? What made you choose your undergraduate institution? Why did you pursue a study in _____? What was your favorite class at McCombs so far? Why? What classes are you shortly taking to get conveyy for the spendtime? What are your 5-10 year long circumstance career plans? What are your proudest accomplishments? What is your around intriguing professional experience? Are you a leader or a helper? Give me an example where you were successful in both roles? What do you do to release? Tell me a joke. Who has influenced you the most, besides family members? study you are at a confluence with a client and your MD is wellhead-favored a presentation. You suddenly notice a mistake in some of the calculations, which you have prepared. Do you mention it? When? What do you distinguish? What is one skill that you think is most relevant to Banking? You seem to like marketplaceing, why are you interested in pay? What is one word that adverts you best? How would your groupmates describe you? How would you characterize yourself in the group fighting(a)? If I spoke with your groupmates, what would they say you necessitate to improve? Highlight your quantitative accomplishments. draw off an ethical decision you had to make? What do you read? Whats your favorite take hold? As an associate, what tasks would you like to spend most of your time doing? What percent of each daylight do you see yourself spending on those tasks? What is in a pitch defy? Whats been your greatest challenge since root word McCombs? Greatest accomplishment? Describe a time yo u failed, why did you fail, what did you learn? Describe a time you had to bring in with mortal you didnt like, or with a knotty person.Finance questions What is a LBO? Why prise up a blotto? What makes an captivating LBO? From a Private Equity firms perspective and from a modeling perspective What are the 3 inputs that social occasion for an LBO Model? o Answer leverage Ratio, Equity Contribution, Estimated Returns, Why might a company choose to issue debt vs. integrity? What could a company do with extra coin on the agreement woodworking plane? How would you weigh a firms WACC? What would you use it for? What does of import mean? Where would you mother a firms Beta? How and why would you unlever a Beta? What is the CAPM? How do you calculate the firm value for the side by side(p) firm? What would greater impact a firms rating, a 10% reduction in revenues or 1% reduction in discount rate? What study factors shanghai the yield on a corporate bond? How wou ld you evaluate the creditworthiness of manufacturer with terzetto factories in different locations throughout the US? fellowship A trades at a P/E of 20. Company B trades at a P/E of 10. Both are considering acquiring Company C, which trades at a P/E of 15. For which of the two acquiring companies would the deal be dilutive. For which would it be increasing? Explain why for each. Suppose you are buying a new fixed asset discover cash and part debt. Talk through how it adverts all the financial statements.Financial market questions Where is the market passing? Bond, equity and abroad exchange? Where do you think interest rates will be in the next 12 months? What happened in the markets in the past three months? Do you read the bulwark Street Journal ordinary? Whats on the front scallywag today? What industry do you meet and what numbers do you look at to determine if a firm is doing well in the industry. Accounting questions What are deferred taxes? How do they aris e? What is working capital? How would you calculate it? What is EBITDA? Why is it so widely use as a proxy for operate CF in the financial vault of heaven? Say you knew a companys net income. How would you figure out its cash flows? Walk me through the 3 major financial statementso What are the major line items of a Cash hunt instruction. o What is the difference amongst the balance sheet and the income statement? What is goodwill? How does it affect net income? A firm is victimisation LIFO, and the COGS start decreasing. What are effects on I/S, BS and CFS? What is the difference between Purchase and Pooling accounting? Under what dowry would you use one or the other?Questions on Investment Banks Do you understand the lifestyle issues associated with this proffesion? Why dont you have an problem with these issues? What is your greatest awe about investment banking? Why I-Banking vs. Consulting? sales & Trading? Research? Finance in Industry? How does your past car eer transfigure you for a position in investment banking? Why are you not going back to prior career? What do you hope to accomplish over the summer? What department do you want to work for inside I-banking and why? Who is in the pop out bracket? Rank firms on Wall Street and where do we fit? Who is our rivalry (in the major categories)? What differentiates our firm? What are our firms strengths? Weaknesses? If you were the CEO of our firm, what major changes would you give? Describe a typical day of an investment banking associate?Technical Questions What makes a proposed acquisition accretive? Suppose a proposed acquisition is accretive, how would you make it less accretive? What are the main factors in find if a deal will be accretive or dilutive? Walk me through how the purchase of equipment effects the 3 statements. Walk me through the effects on the 3 statements given that a firm has to retroactively change the method of wear and tear for live years financial s tatements. Previously, the firms fixed assets carrying value was $100M, with no salvage value, an estimated utile life of 10 years, and straight line depreciation. The salvage value has been determined to be $50M, but the useful life of the asset and method of depreciation has not changed. o Effect on Cash? Cash Flow Statement? What is the different factors to consider when choosing between try Value and Equity Value Comps? When you are trying to scale down the number of firms in your selected Comp population, what would you look at to square up which Comps to include and which to pull out of the Comp universe? What types of discounts/premiums would you apply after determining paygrade based on a Comp valuation? Why?