What if FCF's are negative in your terminal year?
Investment Representative Interview Questions
16,962 investment representative interview questions shared by candidates
If you had 5 red balls that contained 4 red balls and those red balls contained the original 5 red balls, then how many sets of sets of balls would I take to have a double set of red balls of varying sizes inside each next largest red ball?
What is cheaper, preferred or common stock?
If they met my friends at a bar what would they say about me?
If there is a 500 dollars of capital expenditure in the income statement wiping out all the last year's cash flow, how do you do it.
Pre-deal situation BuyCo plans to acquire 100% shares of SellCo in a stock-for-stock transaction. BuyCo has a net income of $300,000 and 100,000 shares outstanding Market shareprice of BuyCo is $50.0 Pre-deal EPS = $3.0 Pre-deal P/E = 16.7x SellCo has a net income of $100,000 and 50,000 shares outstanding Market shareprice of SellCo is $60.0 Pre-deal EPS = $2.0 Pre-deal P/E = 30.0x The deal BuyCo agrees to pay a premium for control of 30%, so the offer price for one SellCo share is 1.3*$60.0 = $78.0 Stock-for-stock exchange ratio is $78/$50 = 1.56 of BuyCo shares for one SellCo share BuyCo issues 1.56*50,000 = 78,000 new shares to exchange them for all the SellCo shares outstanding Total shares of NewCo = 100,000 (pre-deal shares of BuyCo) + 78,000 (new shares) = 178,000 shares NewCo expected EPS = Total net income/Total shares outstanding = ($300,000+$100,000)/178,000 = $2.25 NewCo expected shareprice = (P/E of BuyCo)*(expected EPS) = 16.7x*$2.25 = $37.45 Post-deal situation EPS of NewCo fall from $3.0 to $2.25, so the deal is 25% dilutive for BuyCo shareholders BuyCo shareholders own 100,000/178,000 = 56.18% of NewCo SellCo shareholders own 78,000/178,000 = 43.82% of NewCo http://en.wikipedia.org/wiki/Accretion/dilution_analysis
How strong you are in investment banking?
What happens to a company's enterprise value when it issues new shares and pays out those proceeds as dividends?
Introduce yourself briefly Tell me about an interest or hobby that causes you to lose track of time? An activity you find demotivating. We have colleagues in different background, how would you adjust yourself? When was the last time that you nearly gave up, what was the result? Do you prefer gathering factual data, how is it important? What personal stories do you believe that would push you through the hard time, what is the result? What analysis do you prefer, analysing broadly or deeply? What is your personal code of conduct? Do you want your ideas to stand out? How often do you push your ideas? Add something about you? What new skills/knowledge you learned recently?
What firm evaluation methods do you know.
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