interview question- good example?
hey guys,
Whats a good example of a recent macroeconomic event/announcement that effected the value of a firm?
Trending Content - Job Search Advice Forum
| +22 | Layoff Stigma | 12 | 2d |
| +20 | Down bad for career advice | 3 | 2d |
| +18 | Feeling behind | 2 | 1d |
| +18 | Don’t underestimate how risky joining a startup is | 3 | 2d |
| +18 | Advice for incoming freshman @ target | 5 | 1d |
| +14 | How to approach moving offices within a national brokerage? | 3 | 3d |
| +13 | Feeling pigeonholed due to past internships | 3 | 4d |
| +10 | Low Tiew Consulting vs Middle Office at an mid-size Investment Firm | 2 | 4d |
| +9 | Need advice - reentering industry | 1 | 6d |
| +9 | 2027 FT IB Recruiting from Private Credit | 4 | 1d |
Career Resources
I would guess a change in interest rates are the easiest example, don't if you are from the U.S. or somewhere else, but depending on what is considered recent, you could go with that. It can effect the value of a firm in quite a few ways, from risk free rates and in turn discount rates (i.e. WACC, and in turn, Terminal Value), to interest earned on items like cash holdings in banks.
A lot of answers come to mind, i.e. industrial production went down, industrial industry growth is slowing down, we are likely to see less revenue growth in this industrial firm, perhaps tighter margins, as well.
Exchange rates adjusting could affect a firm doing business in a lot of nations, this can be affected through interest rate annoucements, inflation, unemployment, production, etc.
1) Write-downs
2) Fed as a back-stop and babysitter
3) Credit market turmoil
4) Slow down in deal flow and sell-side mandates (decreased revs)
Higher inflation leading to a decreased strength of the local currency, which can affect sales and production costs if the corporation is multinational.
Explicabo et dolorem ab delectus. Eius quam officia aperiam aspernatur aliquid. Molestiae reprehenderit dolor voluptatem cum hic.
Quibusdam quaerat et cumque repellendus magnam excepturi exercitationem. Quis corporis vitae qui quo aperiam quia ea enim. Quae culpa sed fuga quae non et in. Odit sed et non minus saepe saepe consequatur.
Et ut quasi non optio distinctio provident. Nostrum accusamus est autem non perferendis.
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...