The 400 investment banking questions are a comprehensive list of questions that are commonly asked in investment banking interviews questions.
These questions are divided into three categories: fit questions, technical questions, and other topics.
3 Categories Of 400 Investment Banking Questions
1. Fit Questions
Fit questions are designed to assess your fit for the investment banking industry. They typically ask about your personal characteristics, your teamwork skills, and your reasons for wanting to work in investment banking.
Some common fit investment banking questions include:
- What are your strengths and weaknesses?
- Why do you want to work in investment banking?
- What do you know about our firm?
- What is your leadership style?
- Tell me about a time when you had to work under pressure.
- How do you handle stress?
- What are your career goals?
These questions are open-ended, so there is no one right answer. However, there are some things you can do to prepare for them.
First, think about your own personality and what you bring to the table. What are your strengths? What are your weaknesses? What are your values?
Second, research the investment banking industry and the specific firm you are interviewing with. What are their values? What kind of culture do they have? What are they looking for in a new hire?
Finally, practice answering fit investment banking questions. The more you practice, the more confident you will be when you are actually in the interview.
2. Technical Questions
Technical questions are designed to assess your knowledge of financial concepts and your ability to apply them to real-world problems.
They typically ask about accounting, valuation, DCF, merger models, and LBO models.
Here are some technical investment banking questions that you may be asked in an interview:
- What is the difference between LIFO and FIFO?
- How do you calculate deferred taxes?
- What is the difference between GAAP and IFRS?
- How do you value a company using a DCF?
- What is the difference between enterprise value and equity value?
- How do you calculate terminal value?
Discounted Cash Flow (DCF):
- What is the discount rate?
- How do you calculate the WACC?
- What is the difference between an unlevered and levered DCF?
Merger Models and LBO Models:
- What is an LBO?
- How do you build a merger model?
- What are the key drivers of an LBO?
- How many golf balls fit in a Boeing 747?
- If you have a 10-foot ladder and a 20-foot tree, how do you get to the top of the tree?
These are just a few examples of the technical investment banking questions that you may be asked.
3. Other Topics Questions
Other topics include questions about restructuring, distressed M&A, and discussing transactions.
These questions are designed to assess your understanding of these topics and your ability to communicate about them effectively.
The 400 investment banking questions are a valuable resource for anyone who is preparing for a 400 question investment banking interviews.
The questions are designed to be challenging, but they are also fair. By understanding the types of questions that are asked, you can increase your chances of success in your interview.
Here are some other topics that investment banking interviews may cover:
- Questions about economic concepts, such as GDP, inflation, and interest rates.
- Questions about the impact of economic events on businesses and industries.
- Questions about financial regulations, such as the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
- Questions about the impact of regulations on businesses and industries.
- Questions about corporate governance principles, such as the board of directors’ role and the Sarbanes-Oxley Act’s whistleblowing provisions.
- Questions about the impact of corporate governance on businesses and industries.
- Questions about risk management concepts, such as risk appetite, risk tolerance, and risk mitigation.
- Questions about the role of risk management in investment banking.
- Questions about the impact of technology on the financial industry.
- Questions about the use of technology in investment banking.
These are just a few of the other topics that investment banking interviews may cover.
Tips For Answering The 400 Investment Banking Questions
Here are some tips for answering investment banking questions:
- Be prepared. The more you know about the investment banking industry and the specific role you are interviewing for, the better you will be able to answer the questions.
- Be confident. Even if you don’t know the answer to a question, don’t be afraid to say so. The interviewer will appreciate your honesty and willingness to learn.
- Be articulate. Your answers should be clear, concise, and easy to understand.
- Be professional. Dress appropriately and be respectful of the interviewer.
By following these tips, you can increase your chances of success in your investment banking interview questions.