Interview Questions - Technical Questions
- 01:30
Technical questions to expect and prepare for at an Investment Banking interview and how to answer them.
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In this section, interviewers are testing your understanding of technical terms, and methodologies used in investment banking. It's likely you will have covered most of this in your former studies. But it's critical that this is fresh in your mind. Financial Edge's program, The Investment Banker, is a great way to ensure your knowledge is current. Before you start interviewing, you can check out the program on our website. Here are seven example technical valuation questions that you could be asked. Number one, "a client is considering selling to a competitor or doing an IPO, what is the value difference?" Number two, "what considerations would you have when evaluating a potential acquisition for a client?" Number three, "Walk me through the adjustments needed to get from enterprise value, to equity value." Number four, "What differences would you expect between the results of a comps and a DCF valuation?" Number five, "Why would one company trade on a higher multiple than its peers?" Number six, "Which is more reliable, EBIT or PE multiples?" And number seven, "Why do we use fully value diluted shares in calculating equity value?" So let's hear our candidate answer the question.