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how "on point" are the questions that are discussed in Vault Guide for finance for ibanking specifically.....would I be set if I just studied that Guide? or would more reading on the subject be necessary ? thanks

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Comments (9)

  • ideating's picture

    When I did my finance interviews, I was an economics major so it was assumed I knew next to nothing about finance. I had studied pretty extensively so I definitely had some clue as to how read a balance sheet etc. but the point is if you aren't a finance/accting major, the Vault guide is more than enough.

    There are people who say read the WSJ everyday, front to back etc. but what I did was just read it the day of my interview and the night before I just looked at a chart of major indices so I could give a reasonable answer to basic questions/come up with random shit "well the dow was 200 points lower 3 months ago, etc."

  • CDNmonkey's picture

    It depends on your resume and background. The Vault was enough for the basic stuff, but a lot of my interviews got much more technical.

  • CDNmonkey's picture

    This was for summer. You likely won't get any of these unless you are from a finance school.

    How would you model a leveraged buyout?
    What company is a good target for a leveraged buyout?

    Why is it better to use a DCF for valuation of a cyclical business versus using multiples? Then, argue the opposite way.
    What are weaknesses of a DCF?
    Why would you use TEV/EBITDA instead of P/E?

    Why doesn't Microsoft have debt?

    How can you tell if a transaction is accretive/dilutive? Using 100% equity? Using 100% debt?

    Would you buy or sell these industries, and why? (went through a list of 5-6)
    How do commercial banks make money? Would you buy or sell? (technical discussion on interest rates)

    A corporation has extra cash on their balance sheet. What are five things they could do with it?

    Plus a bunch of other finance and accounting Q's.

  • mack387's picture

    ^^^how do you prepare for that? that sounds kind of crazy....i'm majoring in finance & investments next year....are those basic topics usually discussed within a finance major?

  • CDNmonkey's picture

    These were all for summer analyst interviews. If you are at a school known for finance, interviewers will sometimes try to push you a bit.

  • nevrsumr50's picture

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