Clarification of incorrect technical answer during interview
So the situation is, the interviewer asked me how to get equity value from enterprise value, as basic as it was. I was a bit nervous and said something like "to get EQUITY VALUE, you sum up EQUITY VALUE and cash and subtract debt"
I could sense the interviewer must be like "W*F" and he asked if I was sure. He then asked why I would subtract debt from equity value given I said equity value was only available to common share holders.
I pondered 5 secs and realized I was wrong, so I said "I must clarify my answer" and then I gave the correct formula.
The interviewer did ask another question to test my knowledge of the same topic and I did well.
I know I looked stupid, but will that be penalized?
Intern in IB-M&A, bummer your thread hasn't had a response yet. Sometimes bots are smarter than humans anyways:
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Hope that helps.
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