Toughest Invest Banking Interview Questions #10

Toughest Questions Asked In Investment Banking Interview

  1. Explain to me how an Leveraged Buyout Model is constructed and implemented?

  2. Which factors influence the price of residential mortgage-backed security (RMBS)?

  3. Explain to me the European Debt crisis from the beginning to the current time.

  4. What is the main driver that is making the debt crisis persist and What will be the solution in your opinion?

  5. Tell me what is the difference between TIPS and an I bond ?

  6. A client wants to raise funds. How would you advise?

  7. What is the bond duration?

  8. If you are in KFC, which is better: A 5% increase in the price of all existing products or a 5% increase in total volume as a result of a new product?

  9. If I ask you to research a company, what is the first thing you will look at first cash flow, income statement, or a balance sheet? Why?

  10. What will you do if the stock falls 20% after one month of your buy recommendation?

  11. What ratios will you analyze first to understand the liquidity, efficiency, and profitability of a company?

  12. What kind of financial modeling projects have you done in the past?

  13. Why are you interested in this role?

  14. What are your strengths and how do you help us?

  15. What would your developmental areas be, that is, what are areas that you would need to work on to improve your performance?

  16. What questions do you have for me?

  17. When you're considering any industry, what do you need to think about it first?

  18. What Tesla does, what are its key products and markets? What are the main sources of demand for its products?

  19. What are the key drivers to analyze the industry?

  20. Tell me who are the Tech market participants? How intense is the competition?

  21. What is the industry cyclical and currently where the US economy is in the cycle?

  22. Which outside factors might influence the industry ?

  23. When you're considering buying stock in a company, what do you need to think about it?

  24. When you're considering the revenues, you need to think about what's driving them. Where the growth is coming from, how diverse the revenues are, how stable the revenues are.

  25. What is the working capital?

  26. How do you use a leveraged buyout (LBO) to value any company?

  27. How do you boost returns in an LBO, what method will you use?

  28. What's a net operating loss (NOL)? How is this used?

  29. Tell me how would you account for convertible bonds when you are calculating enterprise value?

  30. What is the Treasury Stock Method?

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