-

most
#
asked

Interview Questions
Investment
Banking.
(with tips)
 The valuation school -
-

1. Walk me
through your resume.

-
Answer should bebrief.
-

Highlight any past experience in

finance.
-
Tell about Internships & Jobs relevant
for the role

te give quick into of

-

your education
a
early life.
 school I
The valuation
-

2. Why Investment
Banking?
-

Employer wants to understand, why

you are
passionate about
IB?
-

Explain what
you see as
your future
within A

what about gets

is
you excited.
-

Alaidgennic Answers "I lovefast paced

enviornment" or "I
enjoy corporate finance"
 The valuation school -
-

5. Tell about admire

me a
company you

Interesting.
recent deal find
or a you

Interviewer want to see

you speakthe
-

same
language as them.

Be aware about deals that made

noise in public
the
recently.
Genuine and imperfectanswers
always
-

recieved better.
 The valuation school I
-

4. Tell me about financial statements

and why its important?

show'scompanyagesthe
sheet
-me
-
Income
-
statement-displays company, net
income over a period of time and
shows revenue & exps.

Cash flow statement-shows

-

company's
from
cam operations, financings and
Investing,
 The valuation school -
-

5. What is the formula for Enterprise

value?
-
Interprise value is met
cap plus
Debt minus cash.

EV mC+ Debt
=
-
cash.

where
current stock price x
mc: N/shaves
01S
Debt short
=
term-long term Debt

call-cath &
equiviliant.
 The school I

6. What are main componento f WA.

How do you calculate it?
- WA is
used to determine return
on Investment in a or as
company
hurdle rate.

wAc =

(kex] +
(aL-T)x]
-

E= market cap.
vE D
= +

D market value of
=

Debt;
cost of
ke: Equity
Kd:c ost of Debt
 I
The school
it is
7. What is
EBITDA? Why preferred?
before Interest, Tax, Depreciation,
Earnings
-

and Amortization.
- It measures company's financial perform

purely based on operational efficiency.

-
Not affected by Accounting policy and
capital structure.
 The valuation school I
-

8. How do
you value a
company?
Three main to value
company.
ways
-
a

is
alysis using-
how much the

company is projected to make in future

discounted to present value.
similar
·
comps-finding
able co.

and compare variables like EBITDA, PE

e tc.

· trans"-find
edent for how much

similar companies have sold in past to deter-

-mine the worth of company we are
valuing.
 The valuation school I
-

9. How
do
you
do Daf
valuation?
It Anvolves

is set
-

Determining how much co. to make

in 5-20 years.
-
we need to project unlevered future cath
Hows and determine discountrate.
then calculate terminal value.

there should present

-
be
brought to value
to calculate Enterprise value.
- Reduce debt and add cash to
getequity
value
 I
The valuation school
-

10. What are the main reasons I need

for me A.2

saving money
-

Improving financial health

-

Eliminating competition.
-
Expansion of Technical capabililites.
chain, etc
-

Expanding products, supply

 The school -

11. When should issue debt

a
company
instead of Equity?
-
cost of debt is
usually cheaper than
cost of Equity.
-

Aswing Debt makes more sense when

co.
·
gets tax shield from issuing debt.
· Co. has stable cash flows andsufficient

Interest
coverage.
·
Results in lower WACC.

· Co. can get better return on Investment

with financial
more
leverage.
 The valuation school -
-

12. Explain process of helping

company a

complete an MBA from the buy side.

Researching potential companies.

client
-

filtering options based on

feedback
-

Figuring out if the potential companies

are interested in being purchased.
&
-

Discussing offer price with buyer

seller.
-

Negotiating the purchase Agreement.

M&A transaction.
-

Announcing the
13. How do you know all this?
-

Because,I follow Parth Verma

on linked in

all
-
can
diligently follow his

Sessions on "financial
modeling and
valuations"- where?

the valuation school

*
wip.
i

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=

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