Junior Analyst One-Year Program

I spoke with a third year Investment Banking Analyst with the Chicago office regarding a new position -- a one-year Junior Analyst program. To start, he asked me about my resume...current job experience, past military experience, and university. He then asked about why I wanted to make a transition into banking, asked me to explain my current knowledge of banking and the hours, and why, in particular, JPMorgan. He then asked me some technical questions, as follows:

1. What valuation techniques are you familiar with and can you briefly describe them to me? (DCF, comparable companies, precedent transactions, LBO)
2. What is the formula for WACC?
3. How do you calculate cost of equity? (CAPM)
4. What are the drivers of an LBO model? (purchase multiple, sales multiple, growth rate, capital structure)
5. If Accounts Receivable were to increase, is that considered a use or source of cash?
6. If a company has positive free cash flow, what can they choose to do with those funds? (Pay dividends, stock repurchase, CAPEX, acquisitions, pay down debt)