I had a blackout on my 1st round phone interview with qatalyst.
Also, where can I learn more about VC valuations (e.g. LBO equivalent of VC)? I have a 2nd round at FT Partners.
| +232 | UBS Healthcare | 48 | 1h |
| +60 | UBS MDs Treat Employees like Dogshit, Data to Prove it | 9 | 6h |
| +58 | More diversity needed in the industry | 11 | 2d |
| +57 | Shana tova - happy new year | 9 | 1d |
| +48 | NYC Wall Street Run Club | 13 | 1d |
| +24 | Lost all ambition / don’t care at all anymore | 7 | 29m |
| +21 | Feeling a bad pattern forming. I need some help | 3 | 3d |
| +21 | What is the role of an analyst at your firm? | 1 | 2d |
| +19 | Reaching out to interviewer who rejected me | 2 | 2d |
| +17 | "Don't include firm in Cover Letter's file name" | 5 | 18h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Assuming a tax rate of 40%, would the answer be 8.33%?
Calculation 1/((1-0.4)*x)=0.20, x=8.33?
WSO, let me know if I made a mistake
Assuming 100% debt
Second that.
The earnings yield of your target is 5%, so x * (1 - 40%) = 5%. x = 8.33%
Equities/Debt mix doesn't have to be given out necessarily, as the cost from issuing equity would be 1/0.1 = 10%, and debt with cost threshold of 8.33% could technically offset the difference with a corresponding mix.
..
you can't. You need to know the debt/equity mix
and if you know the ratios? How would you answer?
Can you share how you would answer the question for the following situations:
100% equity 75/25 equity 75/25 debt
Is this for Summer Analyst positions?
Yes
.
Worked at a top vc this summer. Most valuations were comps, really. Project out financials for the future 5 years then use comps. But valuation wasn't a huge part of my job - most of my time was spent on powerpoint.
Auto ding.
Quis fuga corrupti soluta est. Nesciunt perspiciatis odit est quia. Quod animi ea fuga ab.
Iste blanditiis impedit debitis voluptate. Ratione veritatis nostrum error qui nostrum porro. Assumenda repudiandae harum itaque dolorum.
Sit dolores ut distinctio reprehenderit dignissimos dolorum. Commodi modi accusamus nostrum aperiam. Molestias error exercitationem cum sit ea. Dolor odit perferendis sunt fuga eos velit.
Alias ullam quia culpa suscipit enim. Repudiandae pariatur officia velit ad nam est maxime. Cupiditate adipisci harum consequatur consequatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...