Investment Banking Interview Questions
Investment banking is a financial institutions that assists individuals, governments, corporate s to raise the capital from the public. They act as underwriting agents to clients in behalf of securities
Investment banks can also involved in assisting to the companies in the following services:
a) Mergers & acquisitions
b) Ancillary services such as:
Investment banking is a financial institutions that assists individuals, governments, corporate s to raise the capital from the public. They act as underwriting agents to clients in behalf of securities
Investment banks can also involved in assisting to the companies in the following services:
a) Mergers & acquisitions
b) Ancillary services such as:
- Market Making
- Trading Derivatives
- Equity Securities
- FICC Services
Investment Banking Interview Questions And Answers
Explain About Working Capital:
to carry the day to day business, working capital is required, we can get working capital from current assets- current liabilities. Working capital is required to the any business in smooth function to achieve business goals
What Is WACC: ( Weighted Average Cost Of Capital )
wacc means weighted average cost of capital. It includes every source of capital that takes in to many factors in to consideration like tax rates, depreciation, equity & debt
Define Deferred Tax Asset
is created when the business payed more tax to IRS than reported on income statement. This can be produced from net operating loss & revenue generated to the business
Explain About Working Capital:
to carry the day to day business, working capital is required, we can get working capital from current assets- current liabilities. Working capital is required to the any business in smooth function to achieve business goals
What Is WACC: ( Weighted Average Cost Of Capital )
wacc means weighted average cost of capital. It includes every source of capital that takes in to many factors in to consideration like tax rates, depreciation, equity & debt
Define Deferred Tax Asset
is created when the business payed more tax to IRS than reported on income statement. This can be produced from net operating loss & revenue generated to the business
Steps Occur During Cash Flow Statement
- Start with net income
- examine each major adjustments, it includes deferred taxes, depreciation, working capital.
- Include asset purchases, sales, capital expenditures and investment securities.
- Prepare cash flows for business operations, financing and investments
- and add together to get total cash flow.
- The end of period balance can get by adding change in cash of balance of beginning of period
Explain About DCF? ( Discounted Cash Flow)
It is a discounted cash flow. This type of cash flow is used to calculate the potential of the investments. It is similar to cash flow statement but uses for future projections of free cash flow at discounted price.
financial Impact Of Business Buying A New Equipment In Terms Of Balance Sheets, Income Statements, And Cash Flows?
It is a discounted cash flow. This type of cash flow is used to calculate the potential of the investments. It is similar to cash flow statement but uses for future projections of free cash flow at discounted price.
financial Impact Of Business Buying A New Equipment In Terms Of Balance Sheets, Income Statements, And Cash Flows?
- There is no impact on income statement in initial stages but plant, property, and equipment will go increase & cash will be less in balance sheet, this shows more capital out flow.
- Deprecation can be one reason to go income down as pp&E (property, plant, and equipment) retain their earnings, because deprecation is non cash item of expense that end with low net income.
- The value can be added same to cash flow section in operations
Prepare well of those above investment banking interview questions and answers that are asked in many finance interviews
