2nd Round Boutique?? Types of Questions?
Had first round at a boutique IB last week and had a couple technical questions (Valuation, Depreciation change, etc)
Got asked back for 2nd round with senior bankers...
Was wondering what type of questions I should expect to see? More technical? Fit?
Out of curiosity, is this in Chicago?
From my experience it's much of the same...
You might have multiple interviews with people ranging the gamut- analysts up to MD.
The analyst/associates will ask more technical questions, so definitely stay sharp on those. The level of difficulty should definitely increase. Depending on the type of boutique firm, some will do more accounting based (think HLHZ) questions.
The VP/MD levels will be more relaxed and getting to know you. They do throw in odd questions sometimes, but stay cool, have a good story, and be likeable.
Tons of both
Depends on who interviews you
Be prepared
From my experience the second rounds are typically slightly less technical. The first rounds are where they weed those who are not technically capable out, after that it is purely about seeing if you are a good fit for the firm and vice versa.
Since your second rounds are with senior bankers you should get less technical questions. They should focus on fit. In my experience, it is the Associates that ask most of the technical stuff.
However, always be prepared for technicals. Recently in an interview I was asked by a VP "what is the P/E ratio of $1?".
P/E ratio is a "ratio" which means it is unit less, just as it says on the box!
I don't understand what is the point you are trying to make.
@tbcthk,
You need to be imaginative to answer. To calculate the ratio you need two things. The Price is pretty straightforward. Try to think about what the earnings of $1 could be to figure out the ratio.
Thanks guys
@ beatallica
Who said the P/E ratio had units? Sorry I am confused..
"what is the P/E ratio of $1?"
im curious about this... what is the answer to "what is the P/E ratio of $1".
Going off of EuropeanBob's last post, it's sort of an abstract question designed to see how your analytical skills are. You need the price and the EPS to find the ratio. I guess you could assume that the price is $1 and then try and ballpark a number for EPS. Correct me if I'm totally off base here...
Nah that makes sense. How might you ballpark earnings?
Building on that... I've read somewhere (I think on SeekingAlpha) that to hold a unit of currency is to hold an equity stake in that country (since the unit of currency is the residual claim on that nation's assets... for example, if US decided to end its 'operations' as a country, it would first pay off its debts, and then pay off its equity holders... those holding dollars... is this nuts??). Anyway, with that interpretation, wouldn't the 'earnings' then be the revenues the country (in this case the USA, since it is one dollar) minus the costs (whatever the gov. spends). Thus this could be a 'ballpark' PE
Idk perhaps I'm crazy and bored, but maybe that would work?
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