Comments (43)

Jul 27, 2006 - 2:22am
FreeCashFool, what's your opinion? Comment below:

you can expect an array of accounting questions... remember, accounting is more key to this job than finance

the lay-up tech question asked at almost every interview is: how does depreciation flow through the sheets? so you just want to go through and verbally explain what the effect is of a depreciation charge on each of the sheets and compare it to a "status quo" scenario where there is no dep'n

another common, like you said, is how do i value a company. you already know a few, so just talk about it high-level... "well there are a variety of ways to value a company, three of which are commonly used: 1) comparable company analysis - where you'll take multiples of comparable companies and compare them to your own... for example P/E, EV/EBITDA, EV/Sales... if you want, you can explain why you use Enterprise Value instead of Equity or Market Cap 2) comparable transaction analysis - where you'll compare deals in the industry similar to your own and explore the metrics/valuation used for the target and see how that compares to your own company 3) discounted cash flow - essentially every company is worthless without cash as a going conern yada yada, so we can discount a company's future cash flow by taking its weighted average cost of capital (which they may ask about in more detail).. and discount them to the present value... also talk about exit multiples and terminal values (perpetuity growth rates, etc)

those are the two most basic ones... accounting questions i've been asked: -minority interest-deferred tax assets/liab -lifo/fifo -how are 3 statements linked

obviously, if you have no background in acct / fin, they'll take that into account, but you should have a basic understanding

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Jul 27, 2006 - 8:20am
Anonymous Monkey, what's your opinion? Comment below:

thanks again freecashflow, you have been extremely helpful in this and other threads

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Jul 27, 2006 - 11:28am
Anonymous Monkey, what's your opinion? Comment below:

To FreeCashFool,

Are those all things one should know going into an undergrad BB internship interview, and where is a good place/book to learn all of that stuff? I will have just started taking an intro to finance class one-month prior to my interview so I would like to prepare as much this summer. Thanks!

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Jul 27, 2006 - 1:27pm
FreeCashFool, what's your opinion? Comment below:

you have a BB internship interview during the fall? my experience was that the BB's only recruit for interns during the spring around feb-march or so... you can use some of your free time over winter break to prepare for those

at any rate, if you have no background, you should have a basic understanding at the least... you can pick up the Vault Guide to Finance Interviews, as it breaks things down pretty well (although it's not as comprehensive as you might like)

with accounting you should just understand the basics... hopefully you'll have taken an intro accounting class by then, but the finance guide will also mention some basic accounting. it seems like you don't have that strong of a background in either so i wouldn't sweat it if you can learn the fundamentals from your finance course... and pick up an accounting textbook and go through it if you can

with regards to strange interview questions, you can expect a number of brainteasers / trick questions / mental math q's... the purpose of these is to see how you think, not that you get the right answer. so think out loud, show them your logic, you should be good... the brainteasers / guesstimates are, however, rarer in banking than in consulting

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Jul 27, 2006 - 9:35am
ZiggyMon, what's your opinion? Comment below:

I heard that in a lot of cases they recruit engineers who probably don't have any finance background (since the engieers are marketing their quantative skills to the employers).

What kind of questions would they ask such candidates since they don't really have any accounting background?

Jul 27, 2006 - 10:51am
nychimp, what's your opinion? Comment below:

they'll focus more on WHY you want to do banking and whether they think you're a fit. they may question your desire if you've taken no finance or accounting classes if they've been available to you. otherwise, get some story together how you are intrigued by markest and the financial world, how a deal is finanaced, how a merger or spin-off is done. There is an incredible amount to learn but you love throwing yourself int things "head-first". You know your learning curve will be steep, but that is how you like it., etc etc

Array
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Jul 28, 2006 - 1:32pm
PE Chimp, what's your opinion? Comment below:

It's 3:15 - what's the angle between the hands on the clock?

You have a 3 liter jug, a 5 liter jug and a continuously running hose. Using those 3 things, how do you get exactly 4 liters in the 5 liter jug?

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Jul 28, 2006 - 1:34pm
Anonymous Monkey, what's your opinion? Comment below:

these are right out of vault finance interviews guide. just pick a copy up

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Jul 28, 2006 - 2:25pm
Anonymous Monkey, what's your opinion? Comment below:

Do you get to use a pencil and scratch paper for any of the questions?

Jul 28, 2006 - 1:36pm
Dawgie, what's your opinion? Comment below:

These suck I don't know how to do any of these, should I not try to become an I-Banker? (Serious question)It's a dawg eat dawg world.

It's a dawg eat dawg world.
Jul 28, 2006 - 2:18pm
FreeCashFool, what's your opinion? Comment below:

3:15: if the hour hand doesn't move, it's 0 degrees, but because it does, it moves 15/60 (or 1/4) of 360/12 degrees so it's 30/4 so 7.25 degrees

jugs: fill up the 5 liter, pour into 3-liter, you've got 2 liters left over pour the 2 liters into the 3 liter fill up 5 liter again, pour what you can into 3 liter (1-liter) 5 liters - 1 liter = 4 liters

these aren't skills necessary for banking, they're just to test your thought process... think out loud, and you'll be okay. they'll use these to throw you off your game too, so just be calm and poised... they'll also ask mental math q's that should be relatively easy (e.g. 5^5 or 12*24)...

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Jul 28, 2006 - 2:23pm
Dawgie, what's your opinion? Comment below:

I don't know how to do those math's in my head, am I doomed?It's a dawg eat dawg world.

It's a dawg eat dawg world.
Jul 28, 2006 - 2:22pm
Ratgoo, what's your opinion? Comment below:

0 degrees.

fill 3 liter, empty into 5 liter, fill 3 liter again, fill into 5 liter, the 3 liter will have 1 liter left, empty 5 liter, empty the reaming 1 liter from the 3 liter into the 5 liter, fill the 3 liter, empty into the 5 liter and the 5 liter will contain 4 liters.

or you can figure out the rate at which water is emptying out of the hose, if it's constant function, take an integral.

or, take the dimensions of the 5 liter jug, assuming it's a cylindrical shape, the volume fct will be 5 = PI(radius sqaured)height, given the radius and volume solve for height, mark off at which height the jug will contain 4 liters.

Jul 28, 2006 - 11:43pm
zardari, what's your opinion? Comment below:

Networking is more important than the actual interview. If you network well, you will get an offer even if you screw up your interview

Oct 2, 2006 - 11:46pm
lbomonkey, what's your opinion? Comment below:
zardari:
Networking is more important than the actual interview. If you network well, you will get an offer even if you screw up your interview

Care to back this up with some real evidence? This is bull. You will network with 2 people at a bank at most. During a supersaturday, you will interview with 8-10 people.

Oct 3, 2006 - 12:02am
alvar, what's your opinion? Comment below:

I've interviewed with 3 BBs thus far. I have a liberal arts degree, and I must say that I was never asked detailed finance questions. I did, however, study the different valuation methods and financial statement relationships. I made a point to bring that up during the interviews and they seemed impressed by it. Who knows, it never hurts to be prepared.

Oct 16, 2006 - 5:45pm
irrationalexuberance, what's your opinion? Comment below:

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Nov 26, 2006 - 7:47am
ypchoudary, what's your opinion? Comment below:

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