IB First round and Superday Interview questions

I thought it would be a good idea to post some questions that we received from either our first round or superday interviews with explanations to provide as a resource to future analyst prospects. Let's help out WSO users!

6 Comments
 
Best Response

If EBIT and EBITDA remain constant over two years, but Net Income increases, what are some of the drivers behind the change?

1) Tax regimes - A decrease in the effective corporate tax rate will increase NI

2) Capital Structure - Paying of debt to reduce interest expense

3) Preferred dividends paid - Depending on which point on the income statement net income is referring to, a withholding of preferred dividends can increase the NI before it is close to retained earnings on the balance sheet under stockholder's equity

Conceptually not too bad, but it almost threw me off because I wasn't prepared for the specific question.

 

i got this exact one too! I was a little thrown off at first, but if you think about it, its one of the easiest questions you cn be asked.

 

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