Investment Analyst Interview Questions in New York State | Glassdoor

Investment Analyst Interview Questions in New York State

856

Investment analyst interview questions shared by candidates

Top Interview Questions

Sort: RelevancePopular Date

Why do you add minority interest to enterprise value?

3 Answers

To find the complete value of the company. Even though the income has an already adjusted amount (adjusted to the percentage of the majority interest) you must still see the complete value.

There are three ways to account for an investment in a company. The first (if less than 20% ownership I think) is a a straight investment and gets recorded as an asset in short term investments on the balance sheet. The second (20-50%) is the equity method meaning the company includes just their share of earnings (essentially their equity) in the P&L. The final (50+% ownership) is the consolidation method meaning the company controls the subsidiary and so needs to consolidate its earnings. However, if it doesn't own 100%, then they cant claim 100% of earnings. This is accounted for by subtracting out minority interest on the P&L. That takes care of earnings but enterprise value is not based on earnings, its based on balance sheet metrics. So since the company doesnt own the entire company but has consolidated the entire sub on its balance sheet, minority interest needs to be removed from the value of the company.

Sorry, confused my answer a little. You add back the minority interest just like you add back preferred shares because it is essentially a form of equity financing and since its consolidated, the owner of the company in question will have to compensate the minority interest for their equity investment.

What is 23 times 40

2 Answers

square root 100000

3 Answers

What is the most important financial statement?

2 Answers

How do you value a bank compared to a widget company?

1 Answer

Why JEF and why this particular group?

1 Answer

Tell me about yourself

1 Answer

How can we make sure you are the right fit for the position?

1 Answer

Expected value of a 6 sided die?

1 Answer

"Why would a developer take on debt over equity?"

1 Answer