Investment Banking Interview

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University of Texas – McCombs School
Standard Questions:
1. Walk me through the highlights of your resume. What is your story, walk through the decisions you have made, and how that relates to your current interest in Investment Banking.. 2. Why investment banking? Why our bank?

3. How do you value a company?
4. To what extent have you created and used financial models before? Discuss your excel modeling skills. 5. Why did you choose McCombs?
6. What other firms are you interviewing with and why? Are you interviewing with consulting firms also? What career opportunities are you exploring other than I-Banking? 7. What were your grades in college? What were your grades for the first semester at McCombs? What was your GMAT score? 8. What qualities would you consider most important for a career in I-Banking? What are your greatest strengths? What are your weaknesses? 9. What do you understand the responsibilities of an associate/summer associate to be? 10. Describe a current event in the market (i.e., LTCM at the end of 1998)? 11. What questions do you have for me? Always have at least two questions prepared per bank. Resume-and personality questions:

• Why should I take you instead of someone from Wharton? • Why should I pick you over the other qualified candidates at McCombs? • What made you choose your undergraduate institution? Why did you pursue a major in _____? • What was your favorite class at McCombs so far? Why? • What classes are you currently taking to get ready for the summer? • What are your 5-10 year long term career plans?

• What are your proudest accomplishments? What is your most challenging professional experience? • Are you a leader or a follower? Give me an example where you were successful in both roles? • What do you do to relax?

• Tell me a joke.
• Who has influenced you the most, besides family members? • Say you are at a meeting with a client and your MD is giving a presentation. You suddenly notice a mistake in some of the calculations, which you have prepared. Do you mention it? When? What do you say? • What is one skill that you think is most relevant to Banking? • You seem to like marketing, why are you interested in finance? • What is one word that describes you best?

• How would your groupmates describe you? How would you characterize yourself in the group dynamic? If I spoke with your groupmates, what would they say you needed to improve? • Highlight your quantitative accomplishments.

• Describe an ethical decision you had to make?
• What do you read? What's your favorite book?
• As an associate, what tasks would you like to spend most of your time doing? What percent of each day do you see yourself spending on those tasks? • What is in a pitch book?
• What’s been your greatest challenge since beginning McCombs? Greatest accomplishment? • Describe a time you failed, why did you fail, what did you learn? • Describe a time you had to work with someone you didn’t like, or with a difficult person. Finance questions:

• What is a LBO? Why lever up a firm?
• What makes an attractive LBO?
• From a Private Equity firm’s perspective and from a modeling perspective: What are the 3 inputs that matter for an LBO Model? o Answer: Leverage Ratio, Equity Contribution, Estimated Returns, • Why might a company choose to issue debt vs. equity? • What could a company do with excess cash on the balance sheet? • How would you calculate a firm's WACC? What would you use it for? • What does Beta mean? Where would you find a firm's Beta? How and why would you unlever a Beta? • What is the CAPM?

• How do you calculate the firm value for the following firm? • What would greater impact a firms valuation, a 10% reduction in revenues or 1% reduction in discount rate? • What major factors affect the yield on a corporate bond?...
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