- Technical: Pre-tax WACC = unlevered cost of capital (APV)
I can derive the pre-tax wacc from an infinitely recursive cash flow stream, but why is this equivalent to using the "unlevered cost of capital"? Because this discount rate assumes a constant leverage ratio (i.e. fluctuating debt levels), how can ...
Forum topic - bbkingblues1 - Jun 25 2014 - 4:11am
- 2 Technical Questions that I don't understand
1. Our company has a 12% WACC and a 10% IRR for a project. Should we pursue it? I was told the answer is yes (since the 10% IRR is lower than the cost of capital) but I don't understand... if IRR is lower than WACC then aren't you making less? ...
Forum topic - bladedunk - Feb 7 2014 - 1:50am - 8 comments
- Quick technical questions for IB
1. Why would a PE fund NOT use WACC as the discount rate when valuing a potential target? 2. How does nol affect the 3 financial statements? and could anyone help with the intuition behind a merger dilution model? I don't really understand purchase ...
Forum topic - zeroblued - Jan 20 2014 - 10:45pm - 6 comments
- Phone Interview with HR
I have a phone interview with HR later this week and was wondering if HR asks technical questions at all. ...
Forum topic - sophiawright2015 - Feb 10 2014 - 5:50pm - 1 comment
- Moelis SA IB Interview
Can anybody who's actually interviewed with them share some info about the process and what questions might be asked? Everyone on this board screams when they hear Moelis "the most technical thing in your life" but most of the people on this ...
Forum topic - helpinghand - Feb 2 2014 - 1:40am
- Wall Street Interview Questions for a Finance Job Interview
Guide - webthingee - Jun 17 2014 - 12:19pm
- Accounting technicals
Last week at work, someone shared this potential interview question as we discussed full-time recruiting for those trying to lateral. I would love to hear people's answer to this question: "Give 5 ways to increase cash without touching the income ...
Forum topic - Some Unknown - Aug 12 2013 - 1:50am - 3 comments
- 3 Secrets For Your Next Interview
Hey Monkeys, We are in the middle of recruiting season so I wanted to make sure you are ready to go. Here are 3 secrets so you can come out ahead: ...
Blog entry - WallStreetOasis.com - Sep 20 2012 - 10:34am - 10 comments
- Tough technical-did I hear it right?
I had a phone screen with a BB bank today. Got this question: Your debt is 6x EBITDA, and you are selling an asset that is worth 4x EBITDA. You will use the asset sale proceeds to pay down debt. What happens to your debt/ EBITDA ratio? Apparently it ...
Forum topic - MMBanker14 - Dec 5 2012 - 2:39pm - 50 comments
- Is technical analysis considered as part of the ER industry?
Sorry if the question sound noobish to you. Since my experience is not qualified for applying to BBs, I've been looking to join an ER boutique in Hong Kong. After some in-depth research, I realized most of these shops don't even practice ...
Forum topic - tonydaboiii - Feb 13 2013 - 12:37am - 4 comments