Stunned in interview
Hi all
Just had an interview with an APAC BB and was completely thrown off by the interviewer
He was asking basic equity value and EV questions and asked "if a company has 400m equity value and raises 200m debt to buy PPE, how would the equity value and ev change?". I responded by saying that since there was no change to CSE, equity value remains the same but the increase in PPE would increase the EV by 200. He then responds by saying that why would equity value remain the same given that debt has now increased, so the shareholders are even further back in line in terms of claim to the company (ie greater risk), and that EV also wouldn't increase by 200 exactly.
I was not sure how to respond and just wanted to hear what you guys would've done in the interview
Nulla aperiam asperiores iure hic. Modi saepe ipsa aut sint. Culpa mollitia aliquid praesentium quis animi asperiores reprehenderit. Reiciendis vitae cumque enim perferendis rerum. Omnis voluptate omnis tenetur fugit qui.
Aut hic fugit quod id. Dolorum non officiis dolorem omnis quam eius sit. Blanditiis corrupti minus magni ut qui omnis. Error esse fugiat nesciunt minima.
Expedita in sint quis sunt ut voluptatem. Distinctio qui quia numquam suscipit molestiae tempore quo. Laboriosam dicta aut qui et. Et est sint iste sint. Qui quia est hic praesentium nulla omnis vel.
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...