Had my CV funneled through a friend in Deutsche Bank. Expecting to interview and was given these questions to prepare for:
- How to get FCF from scratch?
- Why does a 2 day loan have a higher interest rate than a 2 year, but why a mortgage had a lower rate than credit cards?
3.Which will have the highest interest rate, & which the lowest? Car loan, credit card debt, mortgage, student loans? Why?
- Which will have a higher interest rate, a 2 day loan or a 20 year loan? Why?
- If GAAP is $50 and IRS is $30, what do you have? Why?
- Explain the concept of P/E.
- What return range would you expect from an LBO?
- You want to make 2 PowerPoint slides about a company, what do you include?
- Company with a leverage of 6x buys a company with 5x leverage. What is the effect?
- How would a company recognize synergies? How would a Private Equity (PE) firm?
- A company wants to raise $100mm, what do you ask? The 3 questions?
- Know where the markets and treasury is at?
Would love any honest, good faith answers. Feel like this could also really benefit a few of us Chimps potentially preparing for interviews/recruiting season.
Also, feel free to throw some poo if you feel the answers aren't correct/good faith. Gotta be some way we can keep some law & order in this jungle.
Answer any that you can. Just make sure you show its respective number right beside it.