Vault.com Career Guide to Finance Interviews

by Vault.com

• ISBN13: 9781581311235
• ISBN10: 1581311230
• Edition: 3rd
• Format: Paperback
• Copyright: 2000-09-01
• Publisher: Natl Book Network

Table of Contents

Introduction	1	(1)
The financial services industry	2	(4)
The finance interview: an overview	6	(6)
Questions	12	(5)
Valuation Techniques	17	(42)
Basic accounting concepts	19	(7)
Market valuation	26	(1)
Discounted cash flow (DCF)	27	(15)
Comparable transactions	42	(1)
Multiples	43	(2)
Questions	45	(14)
Stocks	59	(12)
A remedial lesson	60	(1)
Equity vs. debt (stocks vs. bonds)	60	(2)
Dividends	62	(1)
Stock splits	62	(1)
Stock buybacks	62	(1)
New stock issues	63	(2)
Questions	65	(6)
Bonds & Interest Rates	71	(16)
A remedial lesson	72	(1)
Bond terminology	72	(2)
Pricing bonds	74	(2)
The Fed and interest rates	76	(2)
The Fed and inflation	78	(1)
Effect of inflation on bond prices	79	(1)
Leading economic indicators	80	(1)
Questions	81	(6)
Currencies	87	(10)
Exchange rates	88	(1)
Influence of interest rates on foreign exchange	89	(1)
Influence of inflation on foreign exchange	89	(1)
Capital market equilibrium	90	(1)
The three factors	91	(1)
Exchange rate effects on earnings	91	(1)
Effect of exchange rates on interest rates and inflation	92	(2)
Questions	94	(3)
Options & Derivatives	97	(12)
The Wild West of finance	98	(1)
Options	98	(1)
Writing options	99	(1)
Summary options chart	100	(1)
Options pricing	100	(2)
Forwards	102	(1)
Futures	103	(1)
Swaps	103	(2)
Questions	105	(4)
Mergers & Acquisitions	109	(12)
The hot M&A world	110	(1)
Why merge?	110	(1)
Why not merge?	111	(1)
Stock swaps vs. cash offers	111	(1)
Tender offers	112	(1)
Mergers vs. acquisitions	113	(1)
We love pooling accounting	114	(2)
Will that be cash or stock?	116	(1)
Accretive vs. dilutive mergers	117	(1)
Questions	118	(3)
Brainteasers & Guesstimates	121	(16)
Acing guesstimates	122	(2)
Brainteasers	124	(1)
Quick: What's 2+2?	124	(1)
Questions	125	(12)
Final Analysis	137	(2)
Finance Glossary	139