Steps to Clearing Investment Banking Interviews through iBanking Training

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http//www.ibankingtraining.com/
A Guide to Clearing Investment Banking Interviews
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Most business students desire to get a plum
opportunity in investment banking. However, they
wring their hands when theyre supposed to field
the interview questions related to this sector.
Getting a breakthrough in the very first
interview is a bit uncertain if you, the
interviewee, are unprepared which is why, you
should know the answers to the questions that the
investment banker (the interviewer) is likely to
ask before bringing you on board. Lets read
these common questions, first.
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• The common questions
• What are the different ways to evaluate a
  company?
• Is fundraising beneficial when its done
  through bonds rather than equity? If yes, whys
  that?
• How adding 100 to the present depreciation
  account can affect the different figures of a
  financial statement?

If, however, you hem and haw while answering
these questions, youll need to prepare more
vigorously. So just read further to discover some
of the points that you must remember before
attending an investment banking interview.
Know the tasks at hand Any interviewer is
expected to blow a gasket whenever youll appear
for the interview without knowing about the
vacancy. For that purpose, you should know not
only about the basic practices of investment
banking but also about an investment bankers
specific duties thatll doubtlessly give you the
competitive edge.
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• The first year of your job as a research analyst
  will never involve you to publish research
  reports regarding the hot stocks or to pitch
  deals to CEOs and other financial bigwigs of a
  corporate giant. Rather, as a first-year research
  analyst, youll be required to make PowerPoint
  presentations for
• Compiling compo tables
• Preparing pitch books

Likewise, you must be prepared for building
financial models and analyzing fiscal statements
anytime thats because theyre the bread and
butter for any investment banking professional.
(However, no investment banker will let
entry-level professionals prepare a financial
model on the very first day of their job.)
The basic financial know-how As an inexperienced
investment banker, you must at least possess the
general understanding of an income statement, a
balance sheet, or a cash flow statement.
Basically, during an interview (even for an
entry-level position), the interviewer may ask
some of the questions thatll test your skills
related to these topics.
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You should even familiarize yourself with what
all figures that, if changed, can easily affect
the values in some other sections of a financial
statement. Its, therefore, important that you
should understand the concepts that are driving
these changes. Now, lets read up on corporate
valuation as its a very important topic that can
be discussed by the interviewer. Questions that
are related to valuing a company are always
critical to investment banking interviews. (Its
because company evaluation is one of the basic
tasks in any of the investment banking jobs.)
There are a range of techniquesthe comparable
transactions, the Discounted Cash Flows (DCF),
and the multiple approachesthat can be used for
valuing a company.
Among these three techniques, the DCF is likely
to be discussed. In a nutshell, the DCF involves
developing a forecast of a companys Free Cash
Flow (FCF) and afterward discounting the FCF by
the weighted average cost of capital.
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By keeping these tips in mind, you can rest
assured to taste sweet success while appearing
for investment banking interviews. However, if
youre unclear about any of the financial
fundamentals, wed advise you to polish your
skills first. We know that these concepts cant
be mastered overnight for that purpose, we
recommend you to join a training program that can
train you to be an exceptional investment banker
and can even let you know the ways through which
you can prove your mettle during interviews. In
todays busy world do you really have time attend
scheduled live classes? Also take into
consideration the significant cost of a classroom
based financial modeling and valuation course,
which can easily run into four figures. Now there
is a convenient and affordable alternative. Sign
up for the high quality, FREE financial modeling
video tutorials from iBanking Training and take a
step closer to a lucrative investment banking
career - www.ibankingtraining.c
om/ibankingtraining
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