Finance Interview Preparation Dissertation

Finance Technical Interview Concerns

|Corporate Financing

• What could a firm do with excess cash on the "balance sheet"? • Can be the difference between IRR, NPV and Payback?

• What are the impacts upon earnings if a company forms a new stock using debt? operating lease? capital rent? cash? • Why will a company repurchase its own share? What indicators (positive & negative) performs this send to the market? • When do you take a project with a negative NPV?

• What is Sarbanes Oxley and what are the implications?

• Why may a company select debt above equity auto financing, or vice versa? • What are the ways a business can adjust cash moves?

• What are the principal causes of bankruptcy and precisely what are the options open to a company? • Let's say which i have a bond which has a 5% voucher. What happens to industry price when the prevailing interest rates rise to 8%? How are the discount codes affected? • Which company bond may have a higher voucher, a AAA or a BETTER BUSINESS BUREAU? What are the annual repayments received by the owner of the five yr zero coupon bond? • Would you rather have $___ today or $1 a day for the remainder of your life? How would you start valuing this kind of amount? • What happens to a company's collateral when assets rise $1 million and financial obligations fall $2 million? • What does this mean when ever cash flow via operations over a company's cash flow statement is definitely negative? Are these claims bad news? In the event so , would it be dangerous? • Suppose that you constructed a professional forma "balance sheet" for a firm and the calculate for exterior funding needed was negative. How do you interpret this kind of result? • How will a decrease in economic leverage influence a company's cost of fairness capital, if? How will it affect a company's fairness beta? • If you want to evaluate the health of an organization and you may choose between taking a look at 3 years of income claims or 3 years of stability sheets, which in turn would you choose and for what reason? • Precisely what are some reasons why a firm might touch the substantial yield market? • Fund managers today face a large number of challenges in governance and reporting because of recent legislation and incidents. � Given what you learn about these latest news situations and guidelines, what difficulties do you think financial managers are dealing with today?

Valuation

• What are different ways to worth a company?

• Walk me personally through a DCF valuation. Precisely what is free cashflow and how is it calculated? What would you make use of for a discount price? How do you decide the fatal value? • How do you determine WACC?

• What is the formula pertaining to CAPM?

• What is beta? How and why will you unlever a beta?

• Precisely what is the current marketplace risk superior? What is the current risk-free rate? • What kinds of multiples do you think are most critical when valuing a company and why? What are some affordable ranges for people multiples? • What makes an excellent comparable firm for valuation purposes? • What is the between business value and equity value? • So why should the reasonable market value of the company always be the higher of its liquidation value as well as its going-concern value? • What is an LBO? Why influence up a good?

• Lets say I want to value a natural gas pipeline, how would you suggest I do that? What do you imagine is the ideal risk free price to use with this pipe? How will you finance getting a pipeline similar to this? • What do you think a great investment banker really does?

• As a production firm, believe you happen to be producing for full capacity. � Promoting comes to you which has a great new item idea and says the company needs to get started producing it. � What analysis do you do, and what items would you take a look at in response to marketing's request?

Accounting

• Walk me through a standard income statement, balance sheet or cash flow declaration. Discuss the inter-relationships between the income statement, balance sheet and cash flow declaration. •...

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