Investment banking summer analyst interview questions shared by candidates
What are the methods of valuing a company?
It's DCF(Discounted casfhflow) & Relative method, where FCFE(Free cash flow to Equity) is vital for equity shareholders & FCFF(Free cash flow to Firm) is vital for the company.
Company B is valued at 5 million with PPS at $6. Company C is valued at 3 million with a PPS of $10 and has recently sold off a profitable platform. Company A is valued at 9 million with a PPS of $12 and recently bought company D and E and is still looking to expand. Would it be accretive or dilutive for Company A to acquire Company C. What factors in the market can come into play?
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