Investment Banking Analyst Interview Questions in New York City, NY
Investment banking requires superb analytical skills and a commitment to client engagement. As you prepare for an interview for an investment banking analyst position, you'll want to identify examples from your professional career that demonstrate your ability and confidence to make research-based decisions.
Top Investment Banking Analyst Interview Questions & How to Answer
Here are three top investment banking analyst interview questions and how to answer them:
Question #1: Why did you choose to work as an investment banking analyst?
How to answer: This open-ended question is designed to determine your reasons for becoming an investment banking analyst. Your answer should demonstrate that you know what the job entails and have a passion for investment banking. Comment about the skills required for the job, the hierarchy involved, the long hours of work, and your excitement for learning and working with high-profile deals.
Question #2: What are the required skills and qualities of an investment banking analyst?
How to answer: This open-ended question allows you to demonstrate your knowledge base of the basic skills required to be a successful investment banking analyst. Include strong analytical skills, superior attention to detail, solid work ethic, management skills, positive attitude, and time management skills. Investment banking analysts also need excellent communication skills, verbal and written. In your answer, you can share that a successful investment banking analyst is someone who can think outside the box.
Question #3: Can you describe a risk you've taken in life?
How to answer: This open-ended question is used to determine your decision-making skills and your ability to calculate risk and demonstrate analytical thinking. Highlight your logical assumptions made during the risk you describe. Rational analysis underlies investment banking. You should explain this ability by sharing how you assessed any risk you took.
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
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
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
If I stacked pennies from the ground to the top of the Empire State Bldg, would they all fit onto a floor of the building?
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1. Yes on the terrace. 2. Conver pennies into Dollers on better brokerage and get it fit into a bag. Now you can more money fit at any floor. Less
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The Empire state building is approximately 1200 ft. I'm guessing there are 100 floors. This means 12 ft of single stack pennies per floor. 100 of them. I think we can fit 100 stacks of pennies on any floor in New York City. Less
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Yes. 1) break coins into stacks in relation to each window/floor (gives height of floor) 2) highly likely sum of stacks is less than the square of the floor height I'm sure there's another way to answer this as per Vault, though I like to come up with diff answers instead. Less
What is the probability of you walking out of this room and seeing someone without the average number of legs.
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100% Average will be just under 2
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so it should be 0% not 100%. )
If a company acquires another company with a lower P/E ratio, is the deal accretive or dilutive?
3 Answers↳
why
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It depends, a low P/E ratio means the company being acquired has a higher yield. If the yield is higher than the acquirer's weighted cost of the purchase, the deal will be accretive and vice versa. Less
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Accretive