Finance Interview Preparation

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Finance Technical Interview Questions |Corporate Finance | • What could a company do with excess cash on the balance sheet? • What’s the difference between IRR, NPV and Payback? • What are the impacts on earnings if a company builds a new factory using debt? operating lease? capital lease? cash? • Why would a company repurchase its own stock? What signals (positive & negative) does this send to the market? • When would you take a project with a negative NPV? • What is Sarbanes Oxley and what are the implications? • Why might a company choose debt over equity financing, or vice versa? • What are…show more content…
• Who is Alan Greenspan and what does he do? • What do you think of Ben Bernacke and how is he likely to differ from Greenspan? • What do you think of the economy and interest rates? • What is LIBOR? How is it often used? • What does the yield curve currently look like, and what does that mean? • What happened in the markets during the past 3 months? • Do you read the Wall Street Journal everyday? What’s on today’s front page? • What sources of information would you use to analyze a company? • What are the factors that affect option pricing? • Explain put-call parity. • If the stock market in the United States is efficient, how do you explain the fact that some people make very high returns? Would it be more difficult to reconcile very high returns with efficient markets if the same people made extraordinary returns year after year? Case Questions • “There are three ways to account for oil exploration costs: The FIRST is to write-off all exploration costs as incurred, the SECOND is to capitalize successful explorations and write off the rest, and the THIRD is to capitalize all exploration costs. Which one results in the lowest Net Income, the highest Book Value, and the highest Cash Flow?” • Pitch me a stock. Multitude of follow-up questions about the stock including how the company makes money, did they hit their last quarter, what is management's guidance going forward, who

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