Toughest Invest Banking Interview Questions #11

  1. There is a task you have to create a DCF (discounted cash flow) model for a company that has plans to acquire a factory for $10 Million in cash in year four and The present enterprise value of our company is currently $12 Million according to the DCF then how would we change the DCF to account for the factory purchase, and what will our new Enterprise Value?

  2. Walk me through a DCF model?

  3. In the Enterprise Value formula why is the cash getting subtracted?

  4. Tell us about a deal that you heard recently?

  5. Explain to me how the DCF model is constructed and do you think it is reliable?

  6. Explain to me how an LBO model (leveraged buyout model) is constructed and implemented?

  7. Tell me how to calculate fully diluted shares?

  8. A client wants to invest $20 million and how will you create a portfolio?

  9. A company is acquiring another company with a P/E of 15 What will the cost of debt need to be to make this deal accretive?

  10. What kind of interests do you have other than trading?

  11. As per your knowledge ability which company would you invest in and Why?

  12. Where will you see global equities in the year 2025?

  13. Pick a stock for long of your choice and why?

  14. Suppose the government introduced a ban on steel export when what will affect stock performance?

  15. Tell me about black schole model?

  16. Tell me about a recent development in the market, anything which you heard recently?

  17. Tell me about any news that you know in the current market?

  18. Explain VaR and why we are using it?

  19. If 60% of Volkswagen sales are in Europe, what would happen to the company's annual revenue if the exchange rate declined from 15 to 3

  20. What is Basel III?

  21. What are the pros and cons of Comparable Company Analysis?

  22. How do you calculate the cost of equity?

  23. How to calculate fully diluted shares and which method would you use?

  24. How do you value any company?

  25. What happens to enterprise value (EV) when you repurchase shares?

  26. Do you use EBIT or EBITDA to value a capital-intensive company?

  27. Tell me how you can use EBITDA to calculate the cash flow from operations?

  28. How would you value the street Coffee shop on the corner?

  29. Pick an industry which you like most and tell me how it's been doing for the past 5 years and how you think it will do for the next 10 years?

  30. How do you calculate DCF with IRR?

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