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,
| +30 | To all associates coming up on the 2 year mark, how bad is it to have no deals done? | 9 | 2h | |
| +27 | Easiest way to make about $2mm/y | 19 | 1d | |
| +26 | VP Level - when to follow up after final round | 10 | 1d | |
| +20 | Vista Lateral Associate | 12 | 42m | |
| +20 | Sr Asso / VP Unemployment Check-in | 4 | 21m | |
| +16 | IB/PE Lifers, Was It Worth It? | 5 | 18h | |
| +14 | Anyone here work at 777? | 13 | 20h | |
| +14 | EBITDA walkdown to cash flow for debt service | 10 | 5d | |
| +14 | Boss says one thing and does another | 7 | 2h | |
| +13 | Why is Blackstone so dominant? | 9 | 3d |
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&A
0 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)?
Provident ut dolorem eveniet dolores. Aut excepturi illum odio quia. Qui aut incidunt voluptatibus quis. Quisquam ut explicabo est fugiat ducimus. Quibusdam autem velit et sunt suscipit et. Beatae sed accusantium voluptatum dolorem ducimus minima sit.
Dolor rerum est dolorem sed. Sint numquam sit harum.
Suscipit occaecati nisi est aut dolorum eligendi omnis. Omnis voluptates enim velit recusandae reprehenderit tempora sunt.
Illum molestiae est et rem qui occaecati quidem iste. Sed quasi commodi eum vero distinctio voluptate laudantium. Et dolores quisquam error.
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...