ETH Financial Associate Interview Questions and Answers

Fundamental analysis is a method of evaluating the intrinsic value of an asset by examining its economic and financial factors.

• It involves analyzing financial statements, industry trends, and macroeconomic conditions.

• The goal is to determine the true value of an asset and whether it is overvalued or undervalued.

• It is often used in stock market investing to identify potential investments.

• Examples of factors analyzed inc...read more

WACC stands for Weighted Average Cost of Capital. It is the average cost of all the capital sources a company uses to finance its operations.

• WACC takes into account the cost of debt and equity financing

• It is used to determine the minimum rate of return a company needs to earn to satisfy its investors

• WACC is calculated by multiplying the cost of each capital source by its proportional weight in the company's capital str...read more