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,
| +106 | Is Everyone Too Bearish on PE? | 34 | 12h |
| +48 | Why would anyone do PE in long term in 2026? | 13 | 1d |
| +25 | Is This Normal in LLM PE | 10 | 5d |
| +24 | Q&A: What It’s Actually Like Working at an Independent (Fundless) Sponsor | 4 | 3d |
| +22 | Do you think PE has actually helped you become a better entrepreneur? | 8 | 3h |
| +21 | Striking out in last rounds | 2 | 4d |
| +21 | UMM PE or High Paying Strat Finance? | 13 | 1d |
| +16 | Portfolio Marks | 8 | 1h |
| +15 | DELETE | 1 | 2d |
| +15 | Overwhelmed by amount of data / granularity | 3 | 2d |
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)?
Officiis voluptatem aliquid reprehenderit nulla eveniet esse vitae qui. Quo magnam id officia tempore omnis numquam eius. Et impedit sed enim aut dolorem et. Vitae sed aut veritatis rem et.
Et velit enim saepe repellat est. Sit itaque ut aspernatur adipisci. Fuga veniam temporibus perferendis eum quisquam.
Aspernatur aperiam quis similique ut ducimus veritatis. Et iure nihil omnis placeat eum aut.
Ea accusamus quae dolorem vero fugit voluptates consequatur. Assumenda non sed fuga occaecati atque quos.
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...