Finance Case Questions – Finance Technical Interview 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 […]

Mergers & Acquisitions – Finance Technical Interview Questions

Why would two companies merge? What major factors drive mergers and acquisitions? What’s the difference between I-banking and Private Equity? Would you make an offer to buy a company at its current stock price? If a company with a P/E of 20 acquires a company with a P/E of 15 with stock, is the transaction […]

Accounting – Finance Technical Interview Questions

Walk me through a typical income statement, balance sheet or cash flow statement. Discuss the inter-relationships between the income statement, balance sheet and cash flow statement. What is EBITDA? Why is it important? What is goodwill? How does it affect net income? What is the difference between cash and accrual accounting? If Accounts Receivable increases […]

Valuation – Finance Technical Interview Questions

What are the different ways to value a company? Walk me through a DCF valuation. What is free cash flow and how is it calculated? What would you use for a discount rate? How do you determine the terminal value? How do you calculate WACC? What is the formula for CAPM? What is beta? How […]