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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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."

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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.


^^^could you elaborate on that?


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.


CDNMonkey, was this for a summer analyst or summer associate position? Some of those seem to be too technical for a summer analyst interview.


^^^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?


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.


I am a finance major and my summer interviews were not that technical. My school only offers one class on mergers and acquisitions so any questions on accretive/dilution transactions were not possible, but a director I interviewed with did ask if I had any knowledge on it. Being able to talk about DCF, capital structures and tying together the balance sheets are mainly what I encountered.

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