Cash flow modelling test

I've been invited to sit a 1 hour cash flow modelling test to calculate the returns on a potential investment for an analyst position at a large cap REPE.

They said they will send me the test next week after Christmas so I have 1 week to prepare. I'm unsure what they mean by cash flow modelling, is this going to be an LBO or something different? Does anyone know what it would entail or have any example of a 1 hour cash flow modelling test where you need to calculate the returns on an investment?

5 Comments
 

For REPE I suspect they will give you a rent roll (i.e. list of tenants / £ sqm / expiry date / break date) and ask you to do a cash flow projection for the property, calculate leasing stats (WAULT to break etc), make sensible assumptions on lease-up / regearing of leases, calculate unlevered IRRs and then add some leverage and tax to get levered IRRs. Maybe some sensis on tenant default / entry-exit cap rate, advance rate and margin

 

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