Questions about discounted cash flow are likely to appear in your interviews. This valuation method is a fundamental tool when estimating investment outcomes. Your answer could be quite extensive, but the focus should be on hitting the key points and simplifying the rest.

“First of all, you will want to find the future cash flow and discount each year by the weighted average cost of capital. You will then want to calculate your terminal value and add them to get your enterprise value. Finally, after accounting for net debt, you arrive at equity value.

You would use a DCF when trying to find an investment's value. It accounts for the time value of money and lets you know the current value of an investment based on future cash flow projections.”

This question will assess your familiarity with financial statements. More than anything, an interviewer will expect you to have these items down pat due to great experience working with them in classes or professionally.

“On an income statement, you will find revenue, cost of sales, sales, general and administrative expenses, other operating expenses, non-operating income and expenses, gains and losses, recurring items, net income, and earnings per share.”

Similar to other questions, this one will assess your previous experience in analyzing companies by considering financial records and other important factors.

“Choosing five things to consider, I would select earnings growth, economic stability, debt-to-equity ratio, price-to-earnings ratio, and management quality. These have been reliable considerations for me in my investment decisions.”

As you study Harris Williams in preparation for your interviews, you will ostensibly learn the answer to this question. Your interviewer is testing to see if you have done your due diligence in research and whether or not you are serious about being a part of the organization.

“The leveraged buyout is the most often used valuation method at HW.”

This is a run-of-the-mill behavioral question and is always best answered when you answer and present a situation that proves your answer to be true. It is also helpful with these questions to talk about the lessons you know carry with you as a result.

“I handle them well. In a job I had as a student, everything we did was dictated by deadlines, and there was always another one looming. This taught me to prioritize my tasks and work systematically to ensure everything was taken care of in the appropriate order.”

As a technical question, this one will be best answered by clear logic. An interviewer will want to see that you have critical thinking skills to present an accurate and coherent answer in a higher-pressure situation like an interview.

“If the financials of two companies are similar, but the valuations are different, this could be due to the projected future cash flows of the two businesses. However, given that the financial statements offer a historical record, you won’t see those future transactions and their impact yet.

Additionally, intangible assets or goodwill could impact the valuation difference as well. As a result, companies that have curried greater favor than others could have higher valuations while still having similar financials.”

Much of your work could be categorized as a difficult project in a short time. An interviewer is looking for proof that you have completed work like this in the past without crumbling or becoming totally overwhelmed.

You can talk about an experience from whatever past endeavor you choose and then draw out the lessons you learned due to this experience. This will show that you accomplished something and have learned skills that you are ready to apply elsewhere.

“When I was volunteering for XYZ, I had to step in and organize a conference with less than a day’s notice. This meant drawing up a program, putting together presentations, tracking down speakers on such short notice, and hosting the conference the next day.

With so little notice, I took no time for breaks before the conference was set to begin. Not only were all the necessities challenging to organize, but I also knew it would play out in front of over a hundred people, adding to the pressure.

What seemed impossible at the outset eventually became a reality as I buckled down and worked through the tasks I had outlined. I learned that I can generate an incredible amount when I put forth a concerted effort. I bring that same confidence into my projects today.”

This question is designed to put you in a pressure situation and demand a quick response. Knowing that it is coming can obviously equip you with the answer, which can help you respond.

If you need to calculate it at the moment, multiply the 15 by 10, which gives you 150 right away. Then you just need to multiply 15 by 3 and get 45, adding that to your previous 150. Also, begin responding with a few words. This can give you a couple of extra moments to calculate.

“The answer is 195.”

The answer to this question is very straightforward and is one you will have learned and hopefully memorized before interviewing. Take the time to review the formula.

“The formula for EV is Market capitalization + Preferred stock + Outstanding debt + Minority Interest - Cash and cash equivalents.”

Some behavioral questions, like this one, will be asked to see if you will reveal personal shortcomings. You can strike a balance between honesty and still looking impressive, however. Use this opportunity to talk about personal growth.

“Early on in my career, I struggled a bit to connect with coworkers who were naturally negative or skeptical. I learned that one of the things I could do to address this was to get to know the person. In this way, I could joke with them and help them loosen up.”

This question will assess your ability to address time-sensitive situations with a heavy workload. This will help an interviewer see how you deal with managers and whether you will become overwhelmed in high-pressure situations.

“I would think about the most important deliverable from a time standpoint from the client’s perspective. Then I would knock them out from there.”

A question with so little depth will tap your ability to prove that you have thought deeply about your options and career path. Harris Williams wants to know that they have people who consciously chose their organization.

“I knew for a long time that this is what I wanted to do professionally. I also knew that I wanted to contribute to a business that shared my values as well though. So as I researched possibilities, it became clear that Harris Williams is that place for me.”

You will run into a similar kind of question but perhaps posed differently. This question will let you show an interviewer your humility and willingness to grow.

“When I was applying to schools, I did not get into my first choice. I had not experienced failure like that before, so I took it very hard. As I thought about it, though, I realized that it just meant that I had an opportunity to improve. I took this to heart and studied harder at school.”

Some questions will be straightforward, like the one an applicant reported being asked. However, you may be asked these questions just to establish your baseline understanding.

“Backward-looking.”

Some questions may appear to have obvious answers. However, when people are unsure of themselves, they tend to over-explain and over-assure. One successful applicant suggested that your answer to this question should be direct and short.

“Yes, I am. I am aware that this is the career path I have chosen.”