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Banking Associate Interview Questions

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14,421 banking associate interview questions shared by candidates

Round 1 Interview: 1. Tell me about a stoc you like and why 2. What is IRR a. Company A is contemplating buying B for 50% equity 50 debt, what is the effect on IRR if they buy with 10 equity 90 debt b. Say that im the CFO of a company with 100$ on my balance sheet, do I buy back shres of pay down debt, to be more accretive? c. Would u rather have $100 today or $10 a year for the rest of the life, why? i. What if I told you that your personal disc rate was 15% ii. What is the break even discount rate ? 3. What are some possible methods for valuing a company a. What are some valuation multiples u are familiar with? b. Why shouldn’t u use Ev/Earning or Market/EBITDA c. Once the comp set is chosen for an company you want to look at, how do you decide what multiples u want to use? d. A company bringing a major expansion project online. What will effect this company’s EV/EBITDA multiple once the expansion is complete? 4. Company X wants to buy another company y, on January 1st it closes for $100, Company Y has only one asset its worth $80. Once you buy Y it generates 20$ per year of EBITDA. The asset depreciates straight line over 10 years. Walk me through the impact on Company X both during the acquisition and after year 1…..
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Investment Banking Summer Analyst

Interviewed at BMO Capital Markets

4★
Dec 3, 2016

Round 1 Interview: 1. Tell me about a stoc you like and why 2. What is IRR a. Company A is contemplating buying B for 50% equity 50 debt, what is the effect on IRR if they buy with 10 equity 90 debt b. Say that im the CFO of a company with 100$ on my balance sheet, do I buy back shres of pay down debt, to be more accretive? c. Would u rather have $100 today or $10 a year for the rest of the life, why? i. What if I told you that your personal disc rate was 15% ii. What is the break even discount rate ? 3. What are some possible methods for valuing a company a. What are some valuation multiples u are familiar with? b. Why shouldn’t u use Ev/Earning or Market/EBITDA c. Once the comp set is chosen for an company you want to look at, how do you decide what multiples u want to use? d. A company bringing a major expansion project online. What will effect this company’s EV/EBITDA multiple once the expansion is complete? 4. Company X wants to buy another company y, on January 1st it closes for $100, Company Y has only one asset its worth $80. Once you buy Y it generates 20$ per year of EBITDA. The asset depreciates straight line over 10 years. Walk me through the impact on Company X both during the acquisition and after year 1…..

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