Finance Interview Questions: Carey Compass

FINANCE
INTERVIEW QUESTIONS
INTERVIEWING > QUESTION BANK
Technical interviews test your knowledge of finance. Below is a list of questions candidates have been
asked in recent years. Many of these questions are like a verbal quiz about finance. Others are more like
miniature cases based on real situations in finance.
Access Vault.com for more indepth finance interview preparation. Follow the steps below to create
your free Vault.com account today:
• Log into Carey Compass
• On the homepage, scroll down until the right-side navigation is visible.
• Under the section titled Job Postings, click the link Vault - Career Intelligence.
• Once clicked, this link will take you to the webpage where you can create an account.
• If you have any questions or issues logging into Carey Compass or Vault - Career Intelligence, then
• please email the Career Development Office at carey.careerdevelopment@jhu.edu and we will be
• glad to assist you.
CURRENT EVENTS & COMPANY RESEARCH
• What is our company’s stock price?

• What is one area where our company is exposed to risk? What would you do about that?
• How does the increase in interest rates affect our company?
• If you were the CEO of our firm, what would you change?
• What is the price of S&P 500, Dow, NASDAQ, 10yr treasury, gold, and oil today?
• What has S&P 500 done this year and where do you think it’s going?
• Do you think the US economy is headed for a recession?
• What’s your favorite stock and why? Sell it to me.
• US equity market has grown, but emerging markets have lagged. Why?
• With interest rates so low, where would you invest in the fixed income market and why?
• Hedge funds have been challenged, would you still invest in alternative investments and why?
• What are the methods of raising capital for a project?
• Revenues are rising and profits are falling. What could be going on?
ACCOUNTING
• What is an accrual?
• What is the relationship between the three financial statements? How does depreciation affect
each?
• Balance Sheet
• Cash Flow Statement
• Income Statement
BEHAVIORAL
• If I gave you $1,000,000 today, what would you do with it?

• If I gave you $100,000 to invest in a stock today, what stock would you pick and why?
• Walk me through how you would value this business and decide whether to invest.
• If you have two products that are similar, how would you decide which one you want to launch?
• How would you make a business profitable (discuss P&L for this one!)?
• How would you go about pricing a product?
• Tell me about a recent article you read and why it stood out to you.
• Why do you want to work in investment banking?
• Why do you want to work for our company?
• Why should we hire you instead of the 100+ other candidates?
• How might you calculate the number of taxi cabs in NYC?
• What is the approximate number of book titles ever published?
VALUATION
• What is the difference between Internal Rate of Return and Weighted Average Cost of Capital?
• How do you calculate WACC? Where do the cost of capital and cost of debt values in the WACC
equation come from?
• What are the ways you can value a company? What are the advantages and disadvantages of
each?
• Discounted Cash Flow Statement
• Comparable Company Analysis
• Acquisition Comparable Analysis
• When should you value a company using a revenue multiple vs. EBITDA?
• How would you value a company with negative historical cash flows?
• What is the appropriate numerator for a revenue multiple?
• Two companies are identical in earnings, growth prospects, leverage, returns on capital, and risk.
Company A is trading at a 15 P/E multiple, while the other trades at 10 P/E. Which would you prefer
as an investment?
• Walk me through a leverage buy-out model.
• If you are analyzing the credit of a potential customer, what factors would you consider?
• What is good/bad about debt/equity?
• What is typically higher—the cost of debt or the cost of equity?
• How do you calculate the cost of equity?
• How would you calculate beta for a company?
• How do you calculate unlevered free cash flows for DCF analysis?
• Walk me through the steps of conducting an NPV analysis.
• Does it ever make sense to accept a negative NPV project?
• What are some things you can do to further investigate a negative NPV project?
• Is ROA a good measure of success?
• What could be some reasons why actual cash flow was less than forecast?
• How would you go about analyzing a situation where demand exceeded capacity?
• What is better for our company, 2/10 or net 30?
• Which is better for your company, offering a 2% discount if paid in the first ten days, or getting the
net due in 30 days?
Schedule an appointment with a Career Coach to discuss interview strategies and conduct a mock
interview.

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FINANCE

CURRENT EVENTS & COMPANY RESEARCH

• What is our company’s stock price?

• If I gave you $1,000,000 today, what would you do with it?

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