Bank of America Investment Banking Analyst Interview Questions, Process, and Tips

I am a recent graduate with a strong background in finance and a passion for investment banking.

• Recent graduate with a degree in finance

• Internship experience in investment banking

• Strong analytical and financial modeling skills

• Passionate about the investment banking industry

Enterprise value is a measure of a company's total value, including its market capitalization, debt, and cash.

• Enterprise value = Market capitalization + Total debt - Cash

• It represents the total value of a company that would need to be paid by a buyer to acquire the entire business.

• EV is used to compare the value of different companies, taking into account their debt levels and cash reserves.

• It is a more comprehensive m...read more

Cash is subtracted in Enterprise Value formula to reflect the fact that it is a non-operating asset and can be used to pay off debt or fund operations.

• Cash is considered a non-operating asset as it is not directly related to the core operations of the business.

• By subtracting Cash from Enterprise Value, we are essentially adjusting the value to reflect the fact that Cash can be used to pay off debt or fund operations.

• Th...read more

EV/Net Income compares enterprise value to net income, while P/E ratio compares market price to earnings per share.

• EV/Net Income considers the entire capital structure of a company, including debt and equity, while P/E ratio only considers the market price of equity.

• EV/Net Income is a more comprehensive measure of valuation as it takes into account the company's debt levels, while P/E ratio is a simpler measure based o...read more

IB offers challenging work, high compensation, and opportunities for growth. WACC is higher than terminal growth rate due to risk and cost of capital.

• IB offers intellectually stimulating work and high compensation

• Opportunities for growth and advancement are abundant in IB

• WACC is higher than terminal growth rate due to risk and cost of capital

• WACC considers the cost of equity and debt, while terminal growth rate assumes...read more