Hi All,
Just been discussing with a buddy who just came from a PE interview where he got the following question:
We are still discussing it, so would appreciate if some of you guys have the answer?
Thanks,
| +79 | The Peanut Portco | 7 | 3d |
| +53 | Seeking External Perspectives | 15 | 1d |
| +21 | Rejoining old firm - Guaranteed Promotion? | 1 | 9h |
| +20 | Reneging on an offer | 8 | 6m |
| +19 | American PE VP who needs to move to London for personal reasons - how should I go about it? | 8 | 1d |
| +19 | Negotiating sale economics with CEO? | 4 | 2d |
| +19 | Cold Pitching an Investment Idea for a VP Seat | 3 | 21h |
| +18 | Career Advice | 1 | 1d |
| +18 | LMM PE to PE-backed Corp Dev? | 2 | 4d |
| +16 | PE -> CFO at Portco -> Back to Investing | 2 | 1d |
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.
this is the #1 banking interview question, nvm PE.
the main assumption you need is taxes - do you have taxes and if so how much? yes taxes (40%) I/S +10 Depreciation -10 EBIT
-4 taxes (0.4 * 10)-6 Net Income
C/F -6 Net Income
+10 D&A+4 Cash
B/S +4 Cash -10 Net PP&E -6 Retained Earnings
No taxes: I/S +10 Depreciation
-10 EBIT-10 Net Income
C/F -10 Net Income
+10 D&A0 Cash
B/S -10 Net PP&E -10 Retained Earnings
Yea, Lociano... you better bone up on your interview questions. This is one of the most common questions you will get in any interview. Check out the WSO guides if you want to prep.
http://www.ibankingfaq.com/category/interviewing-technical-questions/ac…
Thanks guys!
Yeah I found out that it was one of the more basic banking questions.. But I have just started looking into IB and PE, so learning new stuff each day.
lociano, if ur recruiting this winter, make sure you do some hardcore studying ASAP
What guides would you recommend (should mostly be minded on PE)?
Non quis vero ut aliquid non. Itaque alias eum nostrum excepturi consectetur.
Et voluptas natus ut. Repellendus ea a id nihil inventore. Ab voluptas et rem esse doloribus.
Aut aut impedit quis et maiores quia. Hic voluptas non itaque dolor. Qui laudantium aliquid eaque cum exercitationem numquam enim consectetur. Deleniti quis illo et ut laudantium illum voluptatem. Velit voluptatem voluptate eos rerum est hic.
Laboriosam voluptatem iure qui aut. Dolorum enim aut nihil aliquid in nemo et. Ab dolorem molestiae illo maxime deserunt culpa. Earum sed delectus expedita id nostrum atque voluptatem dolorem.
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...