Investment Banking

108 questions across 41 core, 47 common, 19 occasional

Core

Common

Occasional

108

Total

Core Questions

Essential fundamentals every candidate should know

CoreMEDIUMDCF FundamentalsTECHNICAL

Walk me through a DCF analysis.

CoreEASY3-Statement ModelTECHNICAL

Walk me through the three financial statements.

CoreMEDIUMCost of CapitalTECHNICAL

What is WACC and how do you calculate it?

CoreEASYValuation FundamentalsTECHNICAL

What is enterprise value versus equity value?

CoreMEDIUMValuation MethodologiesTECHNICAL

How do you value a company?

CoreEASYPersonal PitchBEHAVIORAL

Tell me about yourself.

CoreEASYSTAR MethodBEHAVIORAL

Tell me about a time you worked in a team.

CoreEASYCareer MotivationBEHAVIORAL

Why investment banking?

CoreMEDIUMSTAR Method (Failure)BEHAVIORAL

Tell me about a time you failed.

CoreEASYFirm ResearchBEHAVIORAL

Why Goldman Sachs specifically?

CoreEASYCapital Structure BasicsTECHNICAL

What are the main differences between debt and equity financing?

CoreMEDIUMStatement LinkagesTECHNICAL

What happens to the three financial statements if depreciation increases by $10?

CoreMEDIUMFree Cash Flow CalculationTECHNICAL

How would you calculate free cash flow?

CoreEASYSTAR MethodBEHAVIORAL

Tell me about a time you worked under pressure.

CoreMEDIUMDeal Discussion FrameworkBEHAVIORAL

Tell me about a deal you've been following recently.

CoreEASYValuation Multiples MathTECHNICAL

If a company has a P/E of 15x and earns $2 per share, what is the stock price?

CoreEASYEBITDA FundamentalsTECHNICAL

What is EBITDA and why is it used?

CoreMEDIUMGoodwill in M&ATECHNICAL

What is goodwill and how is it created?

CoreMEDIUMSTAR Method (Error)BEHAVIORAL

Tell me about a time you made a mistake.

CoreEASYBuyer Types in M&ATECHNICAL

What is the difference between a strategic buyer and a financial buyer?

CoreEASYCareer MotivationBEHAVIORAL

What interests you about investment banking?

CoreEASYMarket AwarenessCULTURE FIT

How do you stay informed about financial markets and current events?

CoreMEDIUMM&A AnalysisTECHNICAL

What is accretion and dilution in an M&A context?

CoreEASYResume WalkBEHAVIORAL

Walk me through your resume.

CoreEASYBook vs Market ValueTECHNICAL

What is the difference between book value and market value?

CoreEASYM&A FundamentalsTECHNICAL

What is the difference between a merger and an acquisition?

CoreMEDIUM3-Statement ModelTECHNICAL

How do the three financial statements link together?

CoreMEDIUMTime ManagementBEHAVIORAL

Tell me about a time you had to juggle competing priorities with tight deadlines.

CoreEASYCapital StructureTECHNICAL

Why would a company choose to issue equity instead of debt?

CoreMEDIUMDeal AwarenessBEHAVIORAL

Tell me about a recent M&A deal that interested you.

CoreMEDIUMValuation MethodologiesTECHNICAL

Explain the concept of a precedent transactions analysis.

CoreMEDIUMIPO ProcessTECHNICAL

Walk me through how a company goes public (IPO process).

CoreMEDIUMFirm DifferentiationBEHAVIORAL

Why Morgan Stanley over Goldman Sachs or JP Morgan?

CoreMEDIUMAsking QuestionsBEHAVIORAL

Do you have any questions for me?

CoreMEDIUM3-Statement WalkTECHNICAL

What happens if depreciation increases by $10?

CoreMEDIUMDeal DiscussionBEHAVIORAL

Tell me about a deal you followed.

CoreEASYCareer VisionBEHAVIORAL

Where do you see yourself in 5 years?

CoreEASYWorking CapitalTECHNICAL

What is working capital and why does it matter?

CoreEASYSelf-AssessmentBEHAVIORAL

What are your strengths and weaknesses?

CoreMEDIUMFirm DifferentiationBEHAVIORAL

Why J.P. Morgan over Goldman Sachs or Morgan Stanley?

CoreEASYSTAR Method (Time Management)BEHAVIORAL

Give me an example of when you had to meet a tight deadline.

Common Questions

Frequently asked in interviews

CommonMEDIUMLBO FundamentalsTECHNICAL

What is an LBO and why do PE firms use them?

CommonHARDValue PropositionBEHAVIORAL

Why should we hire you over other candidates?

CommonMEDIUMSTAR Method (Conflict)BEHAVIORAL

Tell me about a time you had to work with difficult team member.

CommonEASYSTAR MethodBEHAVIORAL

Describe a situation where you had to lead a team.

CommonHARDM&A AnalysisTECHNICAL

Walk me through an M&A analysis.

CommonHARDAccretion/DilutionTECHNICAL

Explain accretion/dilution analysis in an M&A deal.

CommonMEDIUMSTAR Method (Analytical)BEHAVIORAL

Tell me about a time you had to analyze complex data to make a recommendation.

CommonEASYHonest Self-AwarenessBEHAVIORAL

What is your greatest weakness?

CommonEASYSTAR Method (Initiative)BEHAVIORAL

Tell me about a time you went above and beyond.

CommonHARDMerger Model / Accretion-DilutionTECHNICAL

Walk me through a merger model. How does an acquisition create value?

CommonMEDIUMWorking Capital in ValuationTECHNICAL

How does working capital affect a company's valuation?

CommonMEDIUMDeal DiscussionBEHAVIORAL

Walk me through a recent deal Goldman Sachs advised on.

CommonHARDLBO MechanicsTECHNICAL

Walk me through an LBO model.

CommonMEDIUMValuation Multiples SelectionTECHNICAL

When would you use a P/E ratio vs EV/EBITDA?

CommonEASYMarket AwarenessBEHAVIORAL

How do you stay current with financial markets?

CommonMEDIUMM&A Deal StructuresTECHNICAL

What is the difference between asset and stock deals?

CommonMEDIUMSTAR Method - Analytical SkillsBEHAVIORAL

Describe a time you had to analyze a large amount of data.

CommonMEDIUMDebt Capital MarketsTECHNICAL

What are the different types of debt a company can issue?

CommonHARDValuation of Unprofitable CompaniesTECHNICAL

How would you value a company with no earnings?

CommonEASYCareer TrajectoryBEHAVIORAL

Where do you see yourself in five years?

CommonMEDIUMComparable Companies SelectionTECHNICAL

How do you select comparable companies for a trading comps analysis?

CommonHARDSell-Side M&A ProcessTECHNICAL

Walk me through the process of a sell-side M&A engagement.

CommonEASYSTAR Method - Conflict ResolutionBEHAVIORAL

Tell me about a time you had to work with someone you didn't get along with.

CommonMEDIUMBeta and CAPMTECHNICAL

Explain the concept of beta in finance.

CommonMEDIUMDiluted Share CountTECHNICAL

What is diluted shares outstanding and how do you calculate it?

CommonMEDIUMDeferred Revenue AccountingTECHNICAL

What is deferred revenue and how does it affect the financial statements?

CommonMEDIUMLBO Candidate CharacteristicsTECHNICAL

What factors would make a company a good LBO candidate?

CommonMEDIUMQuick Financial MathTECHNICAL

A company has $100M revenue growing 10% annually and 20% EBITDA margins. What is year-3 EBITDA?

CommonMEDIUMShare Repurchase ImpactTECHNICAL

How does a share buyback affect the financial statements?

CommonEASYSTAR Method - Learning from FailureBEHAVIORAL

Describe a time you made a mistake and how you handled it.

CommonMEDIUMInterest Rates and ValuationTECHNICAL

What is the impact of rising interest rates on a DCF valuation?

CommonHARDCapital StructureTECHNICAL

What is a leveraged recap and why would a company do one?

CommonMEDIUMSell-Side M&ATECHNICAL

Walk me through the key sections of a CIM.

CommonMEDIUMM&A Defense MechanismsTECHNICAL

What is a poison pill and how does it work as an M&A defense?

CommonEASYDebt InstrumentsTECHNICAL

What is the difference between a revolver and a term loan?

CommonHARDValuationTECHNICAL

What is minority interest and how does it affect enterprise value?

CommonMEDIUMRestructuringTECHNICAL

What are the key differences between Chapter 7 and Chapter 11 bankruptcy?

CommonMEDIUMM&A Financial AnalysisTECHNICAL

What is a pro forma income statement and when would you create one?

CommonMEDIUMDCF MethodologyTECHNICAL

What is the mid-year convention in a DCF and why is it used?

CommonHARDValuation - Special SituationsTECHNICAL

How do you value a company with no earnings?

CommonMEDIUMAchievement StoryBEHAVIORAL

What's your biggest accomplishment?

CommonMEDIUMCash Flow AnalysisTECHNICAL

Explain the difference between levered and unlevered free cash flow.

CommonMEDIUMSTAR Method (Influence)BEHAVIORAL

Tell me about a time you had to persuade someone.

CommonMEDIUM3-Statement WalkTECHNICAL

Walk me through how a $100 inventory purchase flows through the three statements.

CommonMEDIUMSelf-AwarenessBEHAVIORAL

How do you handle feedback and criticism?

CommonEASYFirm ResearchBEHAVIORAL

What do you know about J.P. Morgan's culture?

CommonHARDValue PropositionBEHAVIORAL

Why should we hire you?

Occasional Questions

Asked for specific roles or levels

OccasionalMEDIUMIPO Process OverviewTECHNICAL

Walk me through an IPO process.

OccasionalHARDMerger ModelTECHNICAL

Walk me through a merger model.

OccasionalHARDCapital StructureTECHNICAL

What are the different types of debt and how are they structured?

OccasionalHARDMarket CommentaryBEHAVIORAL

What do you think about current interest rate environment?

OccasionalMEDIUMFermi EstimationBRAINTEASER

How much does a 747 airplane weigh?

OccasionalHARDLeveraged Recapitalization MechanicsTECHNICAL

What is a leveraged recapitalization?

OccasionalHARDMarket SizingMARKET SIZING

Estimate the size of the global investment banking fee pool.

OccasionalHARDSOTP ValuationTECHNICAL

What is a sum-of-the-parts valuation?

OccasionalMEDIUMAccounting Standards ComparisonTECHNICAL

What is the difference between GAAP and IFRS?

OccasionalMEDIUMFairness Opinion ProcessTECHNICAL

Explain the concept of a fairness opinion.

OccasionalHARDFinancial Restructuring OverviewTECHNICAL

What is a restructuring and when does it happen?

OccasionalHARDM&A Defense MechanismsTECHNICAL

What are some common M&A defense strategies?

OccasionalMEDIUMDDM ValuationTECHNICAL

What is a dividend discount model (DDM)?

OccasionalHARDCredit DerivativesTECHNICAL

What is a credit default swap (CDS)?

OccasionalMEDIUMConvertible Bond MechanicsTECHNICAL

What is a convertible bond and why would a company issue one?

OccasionalMEDIUMProfessional PushbackBEHAVIORAL

How would you pitch an idea to a managing director who disagrees with you?

OccasionalHARDNOL and Tax Shield ValuationTECHNICAL

What is net operating losses (NOL) and how do they affect valuation?

OccasionalHARDFinancial Institution ValuationTECHNICAL

How would you value a bank differently from a regular company?

OccasionalHARDTax Structure in M&ATECHNICAL