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Financial Analyst Interview Questions A financial analyst analyses the real estate projects.

. He creates financial model of these projects, researches markets andforecasts demand and supply on real estate domain. He is also responsible for preparing and reviewing of monthly MISschedule, debtors aging and monthly budget analysis. The job is challenging but has rich rewards to offer forhardworking and talented candidates.I would like to provide some of the important questions that are mainly asked by an employer: 1. Define capital budgeting Capital budgeting is a project selection exercise performed by the business enterprise. It uses the concept of presentvalue to select the projects. Tools like pay back period, net present value, internal rate of return, profitability index toselect projects are used. 2. What is capital market? Capital market is the source from which the long term money is raised. It is used for setting up the sustained growth of companies. The stock exchange is also the part of capital market as it helps the traders to maintain the liquidity of investments. Capital market is distinct from money market like banks and lending institutions as they provide short termfinance. 3. What is ratio analysis? Ratio analysis is a technique of financial analysis. It is used to evaluate the financial condition and performance of abusiness concern. It is basically used to workout the profitability, solvency, analyzing financial statement andcomparative analysis of the performance. Ratio analysis simplifies accounting information and workouts the operatingefficiency. It also helps in determining short term financial position. 4. What is payback period? Payback period is the time duration that is required to recoup the investment committed to a project. Business enterprisesuse stipulated pay back period which acts as a standard for screening the project