Investment Consultant Interview Questions
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Investment Consultant interview questions shared by candidates
What is the effect of $10 of depreciation on the three accounting statements?
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Income Statement: Because depreciation is an expense, Operating income (EBIT) decreases by $10. Net income also declines by EBIT*(1-tax rate). Assuming a 35% tax rate, NI decreases by $6.50. Balance Sheet: Cumulative depreciation increase $10, so PP&E (Plant Property and Equipment) decreases by $10). The reduction in net income also causes a Reduction in Retained Earnings by $6.50. Cashflow Statement: Net income decreased by $6.50 and D&A increased $10, cashflow from operations increases by $3.50. Less
Could you walk me through the cash flows statement? What are some items that would be found under each heading?
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The cash flows statement shows cash flows from operating, investing and financing activities. In the operating activities area, for example, you would add back depreciation expense to net income (since no cash has actually left your firm). Investing activities could include money from sales of land, and financing could include receiving cash from a loan, or giving out dividends to shareholders. Less
Suppose that you have a fair coin. You start with $0. You win 1$ each time you get a head and loose $1 each time you get tails. Calculate the probability of getting $2 without getting below $0 at any time.
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1/3
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1/3 Because if he requires 2 heads = $2, then it means he require HH out of {HH,HT ,TH,TT} We cannot consider TT because it would turn to zero. Therefore, he has 1 chance out of 3. Hence 1/3. Less
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Marchov chain with 2 and -1 absorbing OR geometric series 1/4^n from 1 to inf=1/3 Less
f(n) is a function counting all the ones that show up in 1, 2, 3, ..., n. so f(1)=1, f(10)=2, f(11)=4 etc. When is the first time f(n)=n.
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besmart is close. I cheated by coding it up and 199981 is the first one after the trivial case. Less
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Wouldn't that merely occur @ n = 1?
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sorry, forgot to mention other than the trivial case at n=1. the answer should be around 20000 if i recall correctly (think its 19991 but need double check on that) Less
1. Ask about your back ground? 2. Check to see how you can contribute to the role you are being hired for? 3. Why you make a good fit? 4. Case studyish questions about how you would approach this in your work at IFC
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Hi, first of all thanks for sharing your experience. I am curious to know how long you waited to get the online test results (I mean the first psychometric test not the modeling / case study)? Cheers and congratulations! CK Less
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Over a month...so you can easily forget post the first online test... After that stage things picked pace.. Less
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how was the structure of the case study through webex?
If someone offered you $1000 today or paid out at $100 a month over the next ten months, which would you take?
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The answer should be the $1000...$1000 today is worth more than $1000 ten months from now or $100 every month for 10 months due to the time value of money. Less
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Money loses value over time...
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I think it depends largely on the market. 1000 dollars a couple years ago if put into the right fund would be nice now. With how long the market has been expanding It would be a tough choice now. Additionally, they might be checking personality on this. Do you want your money now, or do you like something steady even if the value depreciates over time? Less
Why do you have a C in acgt?
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Cuz its boring as hell!
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How do you even get an interview with a C in accounting?
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They will come with all questions as in the areas you are so lacking
Which side of the BS is Equity on?
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Credit side
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It is a source of Fund, comes under Owner's fund
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There are two types of balance sheet. 1) Acount form 2) Report form In account form Assets are on left side that is debit side. Liabilities and equity are on credit side that is right hand side. In report form everything is under one vertical line that is first is assets then followed by liabilities and owner's equity. Less