How advanced in technicals must interns be?
I found this guide https://cdn.uconnectlabs.com/wp-content/uploads/s… which seems to have a lot of rlly tough questions— questions and content not even covered on the WSO Interveiws prep course.
I’m thus wondering, how advanced do interns need to be in technicals? Outside of screwing up basics (like in accounting, what the effect of depreciation is on all 3 statements, what each statement is, how they’re linked, specifics of each statement etc) is screwing up/ not knowing hard questions a deal breaker in interviews? Any guides that cover/ thoughts you have about what technicals, and how advanced in technicals interns (not FT job seekers) have to posses for interviews? I would assume that interns don’t need to know what FT prospects do (we’re only sophomores for Gods sake) but I’m not 100% sure.
Based on the most helpful WSO content, interns are generally not expected to have the same level of technical expertise as full-time job seekers. However, there are certain technical basics that you absolutely must master to avoid being disqualified. These include:
Accounting Fundamentals: Understanding the three financial statements (Income Statement, Balance Sheet, and Cash Flow Statement), how they are linked, and the impact of key changes like depreciation on all three statements. For example, a $10 increase in depreciation reduces net income by $6 (assuming a 40% tax rate), increases cash flow by $4, and reduces PP&E by $10 while increasing cash by $4 on the Balance Sheet.
Valuation Methods: Knowing the three primary ways to value a company—Discounted Cash Flow (DCF), Comparable Company Analysis, and Precedent Transactions—is essential. You should also understand the basics of WACC, free cash flows, and the time value of money.
Common Technical Questions: Questions like "How does an increase in depreciation flow through the three financial statements?" are standard and should be prepared for. These are covered in guides like M&I and Vault, which are often recommended for interview prep.
For interns, the focus is more on demonstrating that you have the discipline to prepare and a solid grasp of the basics. Advanced technical questions, such as detailed LBO modeling or options pricing, are less common for sophomore interns. If you encounter them, the key is to show your thought process and willingness to learn rather than having a perfect answer.
As for guides, the WSO Interview Prep Course and resources like the "101 Investment Banking Interview Questions" are excellent starting points. They cover the level of technical knowledge typically expected for internships. While the guide you mentioned might have tougher questions, it's unlikely that sophomore interns will be grilled on such advanced topics unless you're interviewing at highly technical or niche firms.
In summary, focus on mastering the basics and being able to explain your reasoning clearly. For interns, fit and enthusiasm often weigh more heavily than nailing every advanced technical question.
Sources: 21 Finance Interview Questions and Answers, What do sophomores usually do for internships?, Week 1 of IBD Internship: Training, Week 1 of IBD Internship: Training, Key Interview Takeaways - 2nd Year Analyst Perspective
Ur expected to know the 400 questions and even have an understanding of them beyond memorization
The 400 aren’t that hard, just study them for like 2-3 weeks and you’ll be fine. The technicals are there for you to get right—focus on your behaviourals. If two candidates get every technical right but one connects better behaviourally, guess who’s getting an offer and who isn’t.
Are behaviorals tricky if you’re a pretty sociable person? Deciding how to divide my time. Also, what resources do you recommend for behaviorals?
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