Be enthusiastic and keep your answer to a minute or less, ending on a positive note. I’m aware that the position requires long hours, but I thrive on that. “The issuance of debt increases the after-tax interest expense, ultimately lowering EPS. '������g ��.� �C�Q�Nf�m��{@1��R��d� 1��}�D�#�s�3eSF���Ȥ�) 0v�d61?\D&3�Đb�1�2�dG�jL݁/�v(���|g��q@��q4�2�VJ� Tell me about a hurdle or obstacle you overcome. This question is about proving your resilience, so tell a compelling story using the STAR method . Getting through that challenging time taught me to never settle and to keep pushing myself.”. The cost of equity is always greater … What follows is a list of 400 investment banking interview questions and answers, divided into different types of “fit” questions (personal, team / leadership, “why banking,” etc. ��j�. Your interviewer will want to ensure you know it inside and out: “The first step of a DCF model is to build a five-year forecast of the three financial statements, based on certain assumptions of how the business will perform. Convey your relevant skills and experiences, with a focus on past successes and how you can add measurable value to the company. %PDF-1.5 %����

Please walk me through the three financial statements. The multiples approach is where you multiply the earnings of a company by the P/E ratio of its industry. This is another one of those questions that you can almost guarantee you’ll be asked during your interview.

While there, I created reports, supported client negotiations, and created valuations using DCF analysis and public comparables. Working in investment banking gives me the opportunity to interact with high-profile companies and partner with industry leaders. Take this question as an opportunity to showcase your flexibility and drive.
In the world of investments, a discounted cash flow (DCF) analysis is the method used to value a project, company, or asset through the concept of the time value of money. 1038 0 obj <>stream 1013 0 obj <> endobj ), technical questions (accounting, valuation, DCF, merger models and LBO models, and brain teasers), and other topics (restructuring, distressed M&A, and discussing transactions). This is another industry-specific question that aims to assess your knowledge of the industry, along with your familiarity with different investment banking terms and situations. If you have any awards, accolades, or just a unique perspective, share it now. endstream endobj startxref

Keep your response clear, concise, and free of too much jargon. As the vice president of my college’s debate club, I’m persuasive and well spoken, with a drive to succeed and the unique ability to influence others to my point of view. Whether EPS increases or decreases, it all comes down to the net impact of issuance of debt and repurchase of shares.”. I’m ambitious, and I love managing and juggling multiple projects. “There are a few different ways you can value a company: the multiples approach, the transactions approach, and the DCF approach. Put their mind at ease by demonstrating that you know what the job entails and you truly love doing it. What would previous co-workers and managers say about you? Next, I would calculate the terminal value through the perpetual growth rate, before discounting the forecast period and the terminal value back to the present value with a discount rate. 3543 0 obj <> endobj endstream endobj 1014 0 obj <> endobj 1015 0 obj <>/Rotate 0/Type/Page>> endobj 1016 0 obj <>stream If you want a career that you can take to the bank, look no further than the world of investment banking. “I truly enjoy the world of corporate finance. EPS is a key metric in fundamental analysis, and it is crucial for stock investors to understand. Furthermore, having studied abroad in Japan and spent two years in England, I’m able to connect quickly with people from diverse backgrounds.”. Financial statements offer companies a way to look at different elements of their business. ��$��j�)�~�ڨ, 9G�ӏ If these shares should be repurchased, this reduces the number of shares available, which then increases EPS. �魧���վڮ��FkS�����4�äi�8r8����� ����{�N��ъ}#N�xF�EY2�ʇ� �� t����ʢ�ek��E(�i��H�v����vy��9�IC��ht�1 No matter what position you’re interviewing for, a great interview is the first step to getting the job. Professionals in this popular, competitive field work have a range of career options, working with corporations, governments, or commercial banks. This question allows the interviewer to assess whether you’re a match for the role, why you’re different from other candidates, and whether you’re self-aware. It’s important to be honest in your answer, as there’s a good chance the interviewer will follow up with your references to see if the descriptions match. The interviewer wants to get a sense of your general background and experience. I was able to shadow employees in several positions, including account managers and managing directors. In the fast-paced world of investment banking, time is money, and you’ll need to be well prepared to succeed. Understanding these statements is crucial in investment banking, and the interviewer will want to ensure you thoroughly understand them and can explain them clearly and concisely: “The three financial statements are the income statement, balance sheet, and statement of cash flows. 黖��8���0�,΅>2���d_N�R{�_1��a�@�ʦJF��/�[��\��i�t�`�``�P���5��]���s�*Juf#(ɀ�E��o��T.�A�ۂ:Tq�H��`�o�W���M���@����U� �٠�@i��)[@?��)���UDGr ޥQ ��=?� One time, I was working on a project with a small team, and we were just putting the finishing touches on it, when the system crashed. I’m excited to gain a deep understanding of the nature of large corporate transactions and be able to use that knowledge to have a long and fulfilling career.”. Luckily, I had been backing up all our data manually at the end of every day, so we only had to redo a little of the work. “I have dual degrees in economics and statistics, which gives me a well-rounded skill set for investment banking. 1025 0 obj <>/Filter/FlateDecode/ID[<27F7EDF80602545E262AB20EB5C8B523><871A780E7C691F46874CC4F5DD493FA8>]/Index[1013 26]/Info 1012 0 R/Length 78/Prev 1036404/Root 1014 0 R/Size 1039/Type/XRef/W[1 3 1]>>stream The 400 Investment Banking Interview Questions & Answers You Need to Know h��Wmo�F�O��-���_4�Y4m��� TGK��R&+H��K�t��:�0�xw��9IS�Z����=�s&=N8�8�$3� �� �h�1�9E�e^��c�ϑ�LZ����%���\�*Z�> '����Ӝf:7�f�P�
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h��VkLW�3w��`e}Q���#��.���6cXD�V���"�&�U[��M�jd+7)6ZjJ�Z�X1�UXЩA��Q*6�HX�&v�)4$��sϽ�3ПM��vr�y|�;߹C!���3n�"�cE4N�&Dп���m7Қ,'���e�����G�Z\n�����VO>���K�Y�[������� x��{��A�u_��[�4�Z$��jyUQ��[x��8�B�(?q&?0o���a�[n�"��l7$�������C�ވ{��1�P~f��,�ⰸh�\�ISѼ5�*�Y��F��x���6��c��e�F�8(w�q�N��� �}|Γ�D�L��?�A�{����;���^�A�$: +p� y��5�z���$�����|*��G�"�)�Y��i\���?ɞ��Gq�X]�R��s��xў�c����+��L3�.���dك3���}�x�|3�,5�I�Y�O*��2l�jh��%9�Yw�������+_w�)����hw�����O۟u�5��o�����'��q�گW�'�i&k��?����o��I�i���9995�_a����[_溝������sFH��WR Additionally, it may be a good choice if the firm has steady cash flows available and is able to immediately make its interest payments.”. “I’m sure that my previous co-workers would say I’m dependable. “Tell me about yourself” is a classic interview question. What can you bring to this role that other applicants cannot?