Scribd Logo
Upload

Welcome to Scribd!

  • 25 views

    Consulting Club Case Interview: - Basic Insights

    Uploaded by

    AnandarajSinnassamy
    This document provides an overview of frameworks that can be used in a consulting case interview. It discusses applying frameworks to industry scenarios, asking insightful questions, and avoiding canned responses. It then presents a case about declining profitability at an accounting firm and frameworks for analyzing financial statements and evaluating projects. These include using the net present value approach and addressing where the discount rate comes from. It also discusses discount rates, costs of capital, hurdle rates, and the capital asset pricing model.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Consulting Club Case Interview: - Basic Insights

    Uploaded by

    AnandarajSinnassamy
    25 views8 pages
    This document provides an overview of frameworks that can be used in a consulting case interview. It discusses applying frameworks to industry scenarios, asking insightful questions, and avoiding canned responses. It then presents a case about declining profitability at an accounting firm and frameworks for analyzing financial statements and evaluating projects. These include using the net present value approach and addressing where the discount rate comes from. It also discusses discount rates, costs of capital, hurdle rates, and the capital asset pricing model.

    Original Description:

    1

    Original Title

    Rice School Consulting Frameworks

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides an overview of frameworks that can be used in a consulting case interview. It discusses applying frameworks to industry scenarios, asking insightful questions, and avoiding canned responses. It then presents a case about declining profitability at an accounting firm and frameworks for analyzing financial statements and evaluating projects. These include using the net present value approach and addressing where the discount rate comes from. It also discusses discount rates, costs of capital, hurdle rates, and the capital asset pricing model.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views8 pages

    Consulting Club Case Interview: - Basic Insights

    Uploaded by

    AnandarajSinnassamy
    This document provides an overview of frameworks that can be used in a consulting case interview. It discusses applying frameworks to industry scenarios, asking insightful questions, and avoiding canned responses. It then presents a case about declining profitability at an accounting firm and frameworks for analyzing financial statements and evaluating projects. These include using the net present value approach and addressing where the discount rate comes from. It also discusses discount rates, costs of capital, hurdle rates, and the capital asset pricing model.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    Consulting Club Overview Professor Brian Rountree

    Consulting Club Case


    Interview
    Basic Insights
    Pick a few frameworks that you find
    compelling and become familiar with how to
    apply them to a variety of industry scenarios.
    Asking insightful questions can often be more
    impressive than attempting to illustrate how
    much you know.
    Be original, canned responses while often
    accurate, do not provide you with a
    competitive advantage.
    Consulting Club Overview Professor Brian Rountree
    Correct, but not Appropriate
    Case Three
    You have been called in by a Big 5
    accounting firm that is experiencing
    declining profitability in its auditing
    operation. What levers would you push
    to help improve profitability?
    Consulting Club Overview Professor Brian Rountree
    Accounting Framework
    Financial Statements
    Balance Sheet (Stock)
    Income Statement (Flow)
    Shareholders Equity (Stock & Flow)
    Cash Flow Statement (Flow)
    Consulting Club Overview Professor Brian Rountree
    Articulation of the Financial
    Statements
    Revenues
    Expenses
    Net income
    Income Statement
    Investment and disinvestment
    by owners
    Net income and other earnings
    Net change in owners equity
    Statement of Shareholders
    Equity
    Cash
    + Other Assets
    Total Assets
    - Liabilities
    Owners equity
    Ending Balance Sheet
    Cash from operations
    Cash from investing
    Cash from financing
    Net change in cash
    Cash Flow Statement
    Cash
    + Other Assets
    Total Assets
    - Liabilities
    Owners equity
    Beginning Balance Sheet
    Beginning Stocks Flows Ending Stocks
    Consulting Club Overview Professor Brian Rountree
    Evaluating Projects
    Analyze business decision at hand
    Choose framework for strategic analysis
    Forecast payoffs (revenues costs) and
    calculate present value
    NPV = C
    0
    + C
    l
    /(l+r) + C
    2
    /(l+r)
    2
    +... + C
    t
    /(l+r)
    t
    Question where does the discount rate, r,
    come from?
    Consulting Club Overview Professor Brian Rountree
    Discount Rates
    Terminology - Hurdle Rates, Cost of
    Capital, Required Return, Expected
    Return.
    If project represents the same risk as the
    firm as a whole then firms cost of capital
    can be utilized.
    Consulting Club Overview Professor Brian Rountree
    Cost of Capital
    Two components, Debt & Equity.
    Why might these differ?
    Weighted Average Cost of Capital
    Required return on debt is simple, just the
    weighted average of the interest rates on debt.
    Required return on equity more complicated.
    Consulting Club Overview Professor Brian Rountree
    Capital Asset Pricing Model
    CAPM assumes risk neutral investors, no
    taxes, perfect & complete markets, and no
    transaction costs.

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy