Finance Interview Preparation Guide

100 Core Concepts • 50 Interview Questions • Worked Examples • Role Tracks • Cheat Sheets

What’s Different in this Edition (Realism Upgrades)

 Practice-first design: worked DCF example with numbers, statement linkages, and valuation sanity checks.
 Role tracks for IB/M&A, Equity Research, Corporate Finance (FP&A), Treasury, and Credit—what to study
and how to answer.
 India context: brief notes on SEBI/RBI/Ind AS basics and campus-style expectations.
 Cheat sheets: 1-page formulas, quick accounting linkages, common pitfalls & model QA checks.
 Recruiter rubric and 5-day sprint plan to get interview-ready fast.

How to Use This Guide

 Memorize the Top 30 in Section A first; treat the rest as reinforcement.
 Rehearse the 10 must-answer questions in Section B until you can deliver in 2–3 minutes.
 Replicate the DCF example in Excel; change growth/WACC/terminal growth and observe impacts.
 Pick one Role Track from Section D and prepare the 10 targeted questions + one mini-case.
 Run the 5-day sprint plan in Section H if you are inside a deadline.

Section A: 100 Core Finance Concepts (Prioritized)

Priority ‘★’ indicates concepts you must be able to explain under 90 seconds with examples.

A1. ★ Time Value of Money (TVM)

Money today is worth more than tomorrow because it can be invested; underpins discounting/compounding.

A2. ★ NPV

PV of inflows minus outflows. Use to judge value creation; sensitive to discount rate/assumptions.

A3. ★ IRR

Rate where NPV=0; useful but can mis-rank projects. Prefer NPV when in doubt.

A4. ★ WACC

Weighted average of cost of equity and after-tax cost of debt using market weights; discount FCFF by WACC.

A5. ★ CAPM & Cost of Equity

ke = Rf + β(MRP). Add country risk premium when applicable; sanity-check beta and inputs.

A6. ★ Enterprise Value vs Equity Value

EV includes debt/cash adjustments; equity value is residual to shareholders.

A7. ★ Three-Statement Linkage

NI → RE & CFO; D&A add-back; capex to CFI; financing to CFF; cash ties out to BS.

A8. ★ Free Cash Flow (FCFF/FCFE)

FCFF to all capital providers; FCFE to equity. Use consistent discount rates.

A9. ★ Terminal Value (Gordon/Exit)

Often majority of DCF; keep g realistic (≤ long-run nominal GDP). Cross-check both methods.

A10. ★ Trading & Deal Comps

Relative valuation using peer multiples; normalize for non-recurring items.

A11. ★ Revenue Forecasting (Top-down/Bottom-up)

Market × share vs units × price. Reconcile and defend drivers.

A12. ★ Sensitivity/Scenario Analysis

Test key drivers (growth, margin, WACC). Show ranges; don’t overstate precision.

A13. ★ DuPont & ROIC vs WACC

Decompose ROE; compare ROIC vs WACC to judge value creation.

A14. ★ Working Capital & CCC

DSO + DIO – DPO; lower CCC improves cash. Growth consumes WC.

A15. ★ EBITDA & EBIT

EBITDA is a proxy for operating cash flow but ignores capex and WC; EBIT includes D&A.

A16. ★ Accretion/Dilution

EPS impact from M&A; depends on price, financing mix, synergies, amortization.

A17. ★ Goodwill & Impairment

Purchase price over net assets; impair when carrying value > recoverable amount.

A18. ★ LBO Basics

Leverage magnifies equity returns via deleveraging, EBITDA growth, and multiple changes.

A19. ★ Bonds: Price–Yield, Duration

Inverse relation; duration shows sensitivity; convexity adjusts the curve effect.

A20. ★ FX Hedging

Forwards lock; options protect with upside; choose by budget certainty vs participation.

A21. Liquidity Ratios

Current/quick indicate short-term solvency; track trends vs peers.

A22. Solvency Ratios

ND/EBITDA, interest coverage; watch maturities and covenants.

A23. Profitability Margins

Gross/operating/net; benchmark mix/efficiency effects.

A24. P/E & EV/EBITDA

Use appropriately; EV/EBITDA is capital-structure-neutral.

A25. P/B & EV/Revenue

Useful for financials or negative EBITDA/early-stage.

A26. Debt Instruments & Covenants

Seniority/security/maintenance vs incurrence; covenant headroom matters.

A27. Credit Ratings Basics

Summarize default risk; read methodology and watch outlook changes.

A28. DCF Integrity Checks

Terminal value share, negative/odd cash flows, circular references, growth > WACC red flags.

A29. Real Options (concept)

Value flexibility under uncertainty (defer, expand, abandon).

A30. Risk & Return (Sharpe/Sortino)

Return per unit risk; Sortino penalizes downside only.

A31. Portfolio Theory & CAPM Limits

Diversification benefits; CAPM is a simplification—use judgment.

A32. Treasury & Liquidity Management

Cash buffers, credit lines, laddered maturities, policy limits.

A33. FX Parities (PPP/IRP)

Long-run anchors; not trading rules but planning guides.

A34. SaaS Metrics (ARR/MRR/NRR)

Unit economics decide valuation sustainability.

A35. Unit Economics (LTV/CAC/Payback)

Growth is good only if profitable and funded.

A36. Accounting: Revenue Recognition

Accrual basics; subscription revenue recognized over service period.

A37. Accounting: D&A & Deferred Tax

Non-cash expenses and timing differences impact cash/profit.

A38. Inventory Valuation (FIFO/WA)

Affects COGS and margins; IFRS doesn’t allow LIFO.

A39. Lease Accounting (IFRS 16/Ind AS 116)

ROU assets and lease liabilities on BS; impacts EBITDA/EBIT.

A40. Budgeting & Variance Analysis

Price/volume/mix variances; zero-based or driver-based planning.

A41. Break-Even & Operating Leverage

Fixed cost absorption and profit sensitivity.

A42. Project Finance (SPV/Non-recourse)

Cash-flow backed structures; risk allocation via contracts.

A43. Securitization (basics)

Pooling assets to transfer risk/liquidity.

A44. Derivatives: Options/Swaps

Hedging rate/FX exposures; know payoffs and risks.

A45. Market Efficiency & Behavioral Biases

Partial efficiency; beware overconfidence/anchoring.

A46. Corporate Governance & Ethics

Board oversight, disclosures, MNPI controls.

A47. SEBI/RBI/Ind AS Basics

High-level regulatory context for Indian roles; verify current circulars.

A48. Model Hygiene

Separate inputs/logic/outputs; audit flags; no hard-coding in formulas.

A49. Interview Math

Fast percents, CAGR, annuity, quick IRR intuition.

A50. Cash Flow Statement (Indirect vs Direct)

Indirect starts with NI and adjusts; direct lists cash receipts/payments.

A51. CFO vs EBITDA

CFO includes working capital movements; EBITDA does not; both exclude capex.

A52. Capex vs Opex

Capex capitalized; opex expensed; impacts cash, profit, and metrics.

A53. Working Capital Financing Tools

OD/CC, factoring, supply-chain finance; match tenor to asset life.

A54. Interest Coverage Measures

EBIT/Interest, EBITDA/Interest; use consistent definitions.

A55. Net Debt

Gross debt minus cash; use for leverage measures and EV bridge.

A56. Minority Interest & Pref Stock

Non-controlling interests and preference shares in EV bridge.

A57. Non-Operating Assets

Excess cash, investments; subtract from EV to get equity value.

A58. Tax Rate Selection

Use marginal cash tax rate for WACC and valuation; reconcile with effective rate.

A59. Country Risk Premium (concept)

Add to MRP for emerging markets; justify source/method.

A60. Beta: Levered vs Unlevered

Unlever to compare business risk; relever using target structure.

A61. Capital Budgeting Pitfalls

Sunk cost fallacy, allocation bias, ignoring cannibalization.

A62. Inflation & Real vs Nominal

Be consistent: nominal cash with nominal rates; real with real.

A63. Terminal Multiple Selection

Align with steady-state peer ranges; avoid cherry-picking.

A64. Precedent Transactions Adjustments

Control premium, synergies, market cycles.

A65. Comps: Forward vs Trailing

Forward preferred for growth; ensure forecast quality.

A66. IFRS vs Ind AS nuances

Broadly converged; differences exist—verify in actual role.

A67. Cash vs Stock Deals

Impacts leverage, taxes, dilution, and control.

A68. Working Capital Seasonality

Retail/festive spikes; smooth with rolling averages.

A69. Covenant Headroom

Monitor triggers and remediation plans; avoid technical defaults.

A70. Dividend Policy Theories

MM irrelevance vs signaling/agency trade-offs.

A71. Buyback Methods

Open-market, tender, Dutch auction; regulatory constraints apply.

A72. Alt Investments Basics

PE/VC/RE/Infra/Hedge—liquidity, fees, benchmarks differ.

A73. Credit Analysis Five Cs

Character, Capacity, Capital, Collateral, Conditions.

A74. Recovery & LGD

Post-default loss depends on seniority, collateral, jurisdiction.

A75. Stress Testing

Downside scenarios for rates, FX, demand, costs; plan mitigants.

A76. Treasury Policy

Defines limits, instruments, and governance for risk management.

A77. Cash Sweeps

Automated debt prepayment from excess cash; impacts deleveraging.

A78. IPO Process (high-level)

DRHP, book-building, allotment; verify latest SEBI norms.

A79. Rights/Bonus Issues

Rights need cash; bonus capitalizes reserves; EPS effects differ.

A80. EPS Quality

Effect of buybacks/options; reconcile GAAP to adjusted EPS.

A81. KPI Selection

Choose KPIs tied to value drivers; avoid vanity metrics.

A82. Data Room Readiness

For deals, ensure consistent, validated, and reconciled data sets.

A83. Working Capital Borrowing Base

AR/Inventory advances subject to haircuts; monitor eligibility.

A84. FX Translation vs Transaction Risk

Accounting translation vs economic cash flow risk.

A85. Commercial Paper & NCDs

Short-term vs longer-term corporate funding instruments.

A86. Maturity Ladder

Staggered debt maturities reduce refinancing risk.

A87. Asset vs Stock Purchase

Tax, liability, and step-up implications differ.

A88. Cash Taxes vs Book Taxes

Timing differences create deferreds; focus on cash.

A89. Controller vs FP&A vs Treasury

Who owns what; interview expectations differ.

A90. Green Finance (basics)

Sustainability-linked bonds/loans; KPIs and reporting.

A91. Working Capital KPI Targets

Set DSO/DPO/DIO by industry; tie to incentives.

A92. Alt Performance Measures

EBITDAR, adjusted EBITDA—understand adjustments.

A93. Sensitivity Tornado Charts

Communicate key drivers clearly.

A94. Bridge Charts

Waterfalls for revenue/margin/cash changes—great in interviews.

A95. Comparable Set Pitfalls

Style drift, survivorship bias, stale data.

A96. Sell-Side vs Buy-Side Models

Presentation vs investment decision needs differ.

A97. Hurdle Rates

Risk-adjusted minimum acceptable returns by project risk.

A98. Asset Beta vs Equity Beta

Unlevered vs levered risk; capital structure effect.

A99. Law of One Price (intuition)

Basis for relative valuation—similar assets price similarly.

A100. Market Microstructure (basic)

Bid-ask spreads, liquidity, order types.

Section B: 50 Finance Interview Questions — Model Approaches

For the first 10, a quick ‘Weak vs Better’ comparison is included to calibrate delivery.

B1. Walk me through a DCF.

Ideal approach:

 Forecast FCFF (drivers: revenue, margins, capex, ΔNWC) for 5–10 years.
 Compute WACC (market-value weights); pick terminal method (Gordon/exit).
 Discount, sum, bridge EV→Equity→Per-share; run sensitivity and cross-checks.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.

B2. NPV vs IRR—conflicts and preference.

Ideal approach:

 Conflicts under non-conventional cash flows or mutually exclusive projects.

 Prefer NPV for absolute value creation; IRR as supplementary rate signal.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.

B3. Link the three financial statements.

Ideal approach:

 NI → RE and CFO (indirect). D&A add-back; capex in CFI; debt/equity changes in CFF.
  Cash end-balance reconciles BS and CFS.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.

B4. Depreciation +₹10 shock—walk through the impacts.

Ideal approach:

 IS: EBIT −10; tax shield +3 @30% → NI −7.

 CFS: add back D&A +10 → net cash +3; BS: cash +3, PP&E −10, RE −7.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.

B5. Equity Value vs Enterprise Value—bridge and use in valuation.

Ideal approach:

 EV = Equity + Net Debt + Minority + Pref − Non-operating assets.

 Use EV for operating-metric multiples; equity for per-share metrics.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.

B6. How do you estimate WACC in an emerging market?

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.

B7. How do you pick good comparables for trading comps?

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.

B8. Terminal value—choose method and police the assumptions.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.

B9. Top-down vs bottom-up revenue build for a manufacturing firm.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.

B10. Working capital forecast—what drives DSO/DPO/DIO?

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

Weak vs Better:

 Weak: rambles definitions without structure or a decision framework.

 Better: 15-sec overview → 2 bullets on method/assumptions → 1 bullet on sanity checks.
B11. Margin improvement—what levers are most realistic?

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B12. ROIC vs ROE—interpret and improve.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B13. Why EV/EBITDA vs P/E? When EV/Revenue?

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B14. Quick accretion/dilution sanity check.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B15. Synergies—identify and quantify with timelines.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B16. Goodwill & impairment triggers and process.

Ideal approach:
  Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B17. LBO basics and what makes a good candidate.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B18. Bonds: price↔yield and duration basics.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B19. Design an FX hedge for an exporter.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B20. Forwards vs options—how to choose.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B21. Interest rate swaps—why corporates use them.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B22. Shorten the CCC—what would you do?

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B23. Dividend vs buyback—decision framework.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B24. DDM—where it fits and where it fails.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B25. Real options thinking in capex.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B26. Project finance risk allocation.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B27. Break-even and operating leverage.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.
B28. Inventory method impacts under inflation.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B29. Lease vs buy—NPV approach and qualitative overlay.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B30. SaaS valuation—what matters beyond EV/Revenue.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B31. Unit economics—CAC/LTV/payback checks.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B32. Quick liquidity/solvency triage.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B33. Quality of earnings—what to test first.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.
B34. Negative working capital—good vs bad contexts.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B35. Model QA under time pressure—what do you check?

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B36. Common modeling errors and prevention.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B37. Ethics: handling MNPI scenarios.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B38. Presenting to a CFO—framing and evidence.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B39. Why finance? (fit)

Ideal approach:
  Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B40. Decision with incomplete data (STAR).

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B41. Guesstimate: size India’s credit card market.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B42. Working capital borrowing base—explain.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B43. Covenants: maintenance vs incurrence.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B44. Country risk in valuation—how to incorporate.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B45. Convertible debt—impact on valuation and dilution.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B46. Buyback vs special dividend—EPS and signaling.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B47. Bridge charts—use in explaining results.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B48. Rule of 40—when to care and when not.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B49. Recovery/LGD—why it matters in credit.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.

B50. Treasury cash laddering—how and why.

Ideal approach:

 Define briefly; state when to use; give a 2-bullet decision framework and a quick numeric or contextual
example.
Section C: Worked Example — 5-Year DCF (Illustrative Numbers)
Scenario: Mid-cap manufacturing firm in India. Numbers are illustrative to show method; replace with real data
in practice.

Key Assumptions

 Base revenue: ₹1,000; Growth Y1–Y5: 10%, 9%, 8%, 7%, 6%.
 EBIT margin: 15%; Tax: 25%.
 D&A: 5% of revenue; Capex: 4% of revenue; NWC: 2% of revenue.
 WACC: 12%; Terminal growth: 4% (Gordon).

DCF Computation (Summary)

Y1 — Revenue: ₹1,100, EBIT: ₹165, NOPAT: ₹124, D&A: ₹55, Capex: ₹44, FCFF: ₹133

Y2 — Revenue: ₹1,199, EBIT: ₹180, NOPAT: ₹135, D&A: ₹60, Capex: ₹48, FCFF: ₹145

Y3 — Revenue: ₹1,295, EBIT: ₹194, NOPAT: ₹146, D&A: ₹65, Capex: ₹52, FCFF: ₹157

Y4 — Revenue: ₹1,386, EBIT: ₹208, NOPAT: ₹156, D&A: ₹69, Capex: ₹55, FCFF: ₹168

Y5 — Revenue: ₹1,469, EBIT: ₹220, NOPAT: ₹165, D&A: ₹73, Capex: ₹59, FCFF: ₹178

Terminal Value (end of Y5): ₹2,317

PV(FCFF Y1–Y5): ₹553

PV(Terminal): ₹1,315

Enterprise Value (EV): ₹1,868

Sanity checks: terminal share of EV, ±100 bps WACC/g sensitivity, compare vs trading/deal comps.

Section D: Role-Specific Tracks & Mini-Cases

Investment Banking / M&A

 Know: DCF, trading/deal comps, accretion/dilution, PPA/goodwill, leverage & covenants.

 Do: Build a one-pager teaser and a simple accretion/dilution test for a ₹1,000 cr acquisition.
 Answer Style: lead with valuation triangulation, synergy outline, and financing feasibility.

Equity Research

 Know: Industry drivers, unit economics, KPIs, forecasting, catalysts, valuation range.
 Do: Write a 150-word thesis with bull/base/bear and one catalyst per scenario.
 Answer Style: evidence-led, not narrative; quantify impact per driver.

Corporate Finance / FP&A

 Know: driver-based planning, variance analysis, working capital, capex ROI.
 Do: Build a revenue bridge (price, volume, mix) and a margin bridge (procurement, productivity).
 Answer Style: tie recommendations to cash impact and risk mitigants.

Treasury

 Know: cash laddering, liquidity buffers, FX/IR hedging policy, investment limits.
 Do: Propose a hedge policy for 40% USD revenues: forwards + options collar; define limits.
 Answer Style: frame risk appetite, cost vs protection, and governance.

Credit / Commercial Banking

 Know: 5 Cs, DSCR, interest coverage, collateral, covenants, LGD.

 Do: Produce a quick borrower memo with DSCR and covenant headroom and stress test −15% EBITDA.
 Answer Style: probability of default + loss severity → lending decision with conditions.

Section E: India Context — Regulatory & Reporting Cheat Sheet

(High-Level)
 SEBI (markets): disclosure, insider trading, listing obligations. Always check latest circulars/guidelines.
 RBI (banking/FX): monetary policy, external commercial borrowings, hedging guidelines; verify current
limits.
 Ind AS / IFRS: broadly converged; leases on balance sheet (Ind AS 116), revenue recognition (Ind AS 115).
 Tax: use marginal cash tax rate in valuation; confirm current rates for the industry/company.
 Campus nuance: interviewers expect method over memorized numbers—cite approach and note that
actual inputs must be updated.

Section F: One-Page Formula Sheet (Core)

PV = CF / (1 + r)^t; FV = PV × (1 + r)^t; Annuity PV = C × [1 − (1 + r)^{−n}] / r

WACC = ke × E/(D+E) + kd × (1−T) × D/(D+E)

ke (CAPM) = Rf + β × (Rm − Rf); β_unlevered = β_levered × [1 / (1 + (1−T)×D/E)]

FCFF = NOPAT + D&A − Capex − ΔNWC; FCFE = NI + D&A − Capex − ΔNWC − Debt Repay + Debt Issue

EV = PV(FCFF) + PV(Terminal); TV (Gordon) = FCFF_{t+1} / (WACC − g)

ROIC = NOPAT / Invested Capital; ROE = Net Income / Equity = Net Margin × Asset Turnover × Leverage

CCC = DIO + DSO − DPO; DSO = Receivables / Sales × 365, etc.

Sharpe = (Rp − Rf) / σp; Sortino uses downside deviation.

Section G: Recruiter Rubric & Self-Check

 Structure (0–5): clear, top-down answers with decisions first.
 Concepts (0–5): accuracy on TVM, DCF, WACC, linkages, comps.
 Numeracy (0–5): clean back-of-envelope math under pressure.
 Business sense (0–5): realistic assumptions, industry awareness.
 Communication (0–5): concise, confident, and transparent about limits.

Pass bar: 18+/25 consistently across mock interviews.

Section H: 5-Day Sprint Plan (If You Interview This Week)

 Day 1: Section A Top 30 + 5 core questions (DCF, statements, EV vs Equity, WACC, NPV vs IRR).
 Day 2: Finish Section A; build the DCF example in Excel and run 4 sensitivities.
 Day 3: Role track of choice: prepare 10 targeted questions + 1 mini-case; write a 150-word thesis.
 Day 4: Two timed mocks (30 min each). Record yourself; fix filler words; tighten structures.
 Day 5: Light revision; formula sheet; 3 quick drills (Depreciation shock, WC build, accretion test).