Interview Questions That Stumped Me
Hi there I recently got asked the following questions and my answers were not convincing enough to the interview. So I wanted to come to this forum, share the questions, and see what responses I got:
- Why do we only take off equity interests (equity investments, where you own 20-50%) from the EV-Equity Value bridge calculation if the financials do not include net income attributable to equity interests?
- is a large working capital in itself is a good or bad thing for the business? To answer this question, I wasn't sure if the interviewer was including cash in the working capital calculation.
- Does net working capital definition include cash in the current assets, or does it not? If not, then why does it not?
- With respect to Purchase Price Adjustment, does the NWC peg / calculation include cash in the current assets? Why not?
- When are bank loans private when are they publicly traded
Wondering the same abt cash in NWC. Seems like it depends on context but I can’t seem to find a straight answer
what roles? IB or CF?
bump!
Regarding 3, why would cash not be included in NWC? That doesn't make any sense
As I am currently engaged in these discussions at the moment on a transaction, I can add some color.
A simple way to think of it is that cash is non-operating. Only focused on the core operating components when thinking of funding needs for the business
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