Investment Banking Interview Questions #2

Questions Asked In Investment Banking Job Role

  1. Explain meaning of WACC and how to calculate it?

  2. How do you value a startup company with no revenue and profit from last 3 years?

  3. What are the main method to valuing a company?

  4. How do you get to FCF from EBITDA?

  5. Walk me through a DCF, LBO and multiples?

  6. What are the three key that UK markets will be focused on over the coming year?

  7. Explain depreciation?

  8. How do you expect current trade policy and federal reserve policy to impact the markets over the next One year?

  9. What stock to long and hedge

  10. Tell me the PE ratio is 7 or 10 which wil you choose and why?

  11. Walk from Revenue to EBITDA

  12. How depreciation move throughout the financial statements?

  13. What is 10-year treasury bond returns?

  14. What are the adjustments between EBITDA and adjusted EBITDA in a pharma company?

  15. Tell me what are the different valuation methodologies?

  16. If cost of equity increase how does the value of company change?

  17. Walk me through a recent M&A transactions that you have heard about it?

  18. What is your outlook for the overall global economy going forward?

  19. Tell me weather a company with high P/E aquires a target with low P/E it will accretive or dilutive?

  20. Walk me about the cash flow statement?

  21. Which main ratios would be used to value a start-up?

  22. How would you compare investing in an FTSE index vs the S&P given todays market conditions

  23. Walk through DCF with levered FCF and what is perpetuity method?

  24. How you will value a oil and gas company?

  25. How do you calculate the market capitalization of a listed company?

  26. You have $1 million to invest in global equity, what will your exposure?

  27. When do you use a PEG multuple?

  28. How does an LBO work? Would you rather finance an acquisition with a debt/equity split of 70/30, 40/60 or 90/10? Why?

  29. Imaging a company borrow 100,000 dollar to buy an equipment, how will it affect the financial statement in the first year?

  30. Tell me how CAPEX can be affect market cap?

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