Recruitment Ready. General Finance Interviews. Outline. General Interview Tips Resources Most Common Mistakes Interview Etiquette Common Questions Behavioural Questions Employer Questions Understanding the Job Basic Technical Questions Capital Structure Valuation methodologies
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General Finance Interviews
Practice, Practice, Practice!
Use the resources available to you!
Technicals - Basics
Enterprise Value =Market Capitalization
+Capital and Operating Leases
“Value determined by calculating the present value of a stream of projected cash flows over a certain period and a terminal value”
“Determining the terminal value involves the application of one of the following going concern approaches”
Comparable Trading / Transaction Multiple
Multiples based on economics that all stakeholders are entitled to (debtholders and shareholders)
Multiples based on economics that only shareholders are entitled to
Less affected and easier to interpret when there are capital structure differences
Permits the use of statistics less affected by accounting policy variations
General Preference for Enterprise Value / EBITDA Multiples…
More comprehensive – focuses on the business and not just the equity investor’s stake
More flexible – can be modified to exclude non-core assets
Relative Risk Profile
Type of Deal
WACC / Capital Expenditures
WACC / Operating Margins
WACC / Intermodal Growth
WACC / Long-Term Growth
Best way to understand the mechanics of a DCF is to do one yourself!