Investment Banking Analyst Interview Questions

long term rate of return

Payback Period, NPV, IRR

Depends highly of the DCF assumptions. In practice, it is often the DCF but if we set a certain set of assumption it could give us the lowest value as well. Deal comps have high constant value because of the market premium.

Precedent because of the premium

100% Average will be just under 2

so it should be 0% not 100%. )

2 factors: the quality of underlying asset and market situation

- quality (ie Default probabilities) and types of underyling assets (ex: fixed vs floating loans...) - market situation (i.e systemic factor) - correlation between assets - repayment rate on the mortgages

Pythagoras as if you roll out the cylinder you get a rectangle with diagonal from corner to corner

Wrap a piece of string around

Prepared beforehand with a crib sheet of key points I wanted to get across.

Spoke about the deal of e.on and innogy