10+ Interview Questions and Answers

Questions related to finance and management trainee position.

• Journal entries affect cash flow statement by either increasing or decreasing cash flow from operating, investing, or financing activities.

• Hedge funds are private investment funds that use high-risk strategies to generate high returns, while mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, and other securities.

• Types of derivative cont...read more

Blackstone is a global investment firm that specializes in private equity, real estate, credit, and hedge fund investment strategies.

• Blackstone's revenue model is based on earning management and performance fees from the funds it manages.

• The firm charges a management fee of 1-2% of assets under management and a performance fee of 20% of profits above a certain threshold.

• Blackstone also earns revenue from its real estate investments through rental income and property sales.

• In ...read more

Close ended mutual funds have a fixed number of shares while open ended mutual funds can issue and redeem shares.

• Close ended funds are traded on stock exchanges and their prices are determined by supply and demand

• Open ended funds are bought and sold directly from the fund company at the net asset value (NAV)

• Close ended funds have a limited number of shares and can trade at a premium or discount to their NAV

• Open ended funds can issue new shares to meet demand and redeem shares...read more

NPV stands for Net Present Value. It is calculated to determine the present value of future cash flows.

• NPV is used to evaluate the profitability of an investment or project.

• It takes into account the time value of money and discounts future cash flows to their present value.

• If the NPV is positive, the investment is considered profitable.

• If the NPV is negative, the investment is considered unprofitable.

• NPV is calculated using a discount rate, which represents the cost of capita...read more

Alternate Asset Management involves investing in non-traditional assets such as real estate, private equity, and hedge funds.

• It is a type of investment strategy that focuses on non-traditional assets

• Examples of alternate assets include real estate, private equity, and hedge funds

• Investors use this strategy to diversify their portfolio and potentially earn higher returns

• Alternate Asset Management is typically used by institutional investors and high net worth individuals

Mutual funds are investment vehicles that pool money from multiple investors to invest in stocks, bonds, and other securities.

• Mutual funds are managed by professional fund managers

• Investors buy shares in the mutual fund and the value of their investment is determined by the performance of the underlying securities

• Mutual funds offer diversification and convenience for investors

• There are different types of mutual funds, including equity funds, bond funds, and money market funds...read more

DCF, valuation approach, EBITDA, turnover cost, and amortization are financial terms used in business valuation and accounting.

• DCF (Discounted Cash Flow) is a valuation method used to estimate the value of an investment based on its future cash flows.

• Valuation approach refers to the method used to determine the value of a company or asset, such as market approach, income approach, or asset-based approach.

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)...read more

Accrued interest is interest that has been earned but not yet paid, cost of money is the price of borrowing money, going concern is the assumption that a business will continue to operate indefinitely.

• Accrued interest is interest that has been earned but not yet paid out to the investor

• Cost of money refers to the price of borrowing money, including interest rates and fees

• Going concern is the assumption that a business will continue to operate indefinitely, without the need to...read more

Looking for growth opportunities and a new challenge.

• Seeking a more challenging role

• Desire for professional growth and development

• Exploring new opportunities to expand skillset

• Current position lacks advancement potential

• Company culture or values misaligned with personal values