KFintech Investor Relation Officer Interview Questions and Answers

Risks in fixed income include interest rate risk, credit risk, inflation risk, and liquidity risk.

• Interest rate risk: Fluctuations in interest rates can impact the value of fixed income securities.

• Credit risk: The risk of the issuer defaulting on their debt obligations.

• Inflation risk: The risk that inflation will erode the purchasing power of fixed income investments.

• Liquidity risk: The risk that you may not be able to...read more

WACC is calculated by taking the weighted average of the cost of equity and the cost of debt, with weights representing the proportion of equity and debt in the company's capital structure.

• WACC = (E/V) * Re + (D/V) * Rd * (1 - Tc)

• E/V represents the proportion of equity in the company's capital structure

• Re is the cost of equity

• D/V represents the proportion of debt in the company's capital structure

• Rd is the cost of debt

• ...read more

I would buy Company A as it has a lower PE ratio, indicating potentially better value for the investment.

• Company A has a lower PE ratio of 10, suggesting it may be undervalued compared to Company B with a PE ratio of 15.

• Investors typically prefer stocks with lower PE ratios as they offer better value for the price paid.

• However, other factors such as growth prospects, industry trends, and financial health should also be

Optimal debt allocation is determined by considering factors such as cost of debt, risk tolerance, cash flow projections, and capital structure goals.

• Consider the cost of debt, including interest rates and fees, to determine the most affordable option.

• Assess the company's risk tolerance and financial stability to determine the appropriate level of debt that can be comfortably managed.

• Evaluate cash flow projections to e...read more

Balance sheet items for a Tech company include cash, accounts receivable, inventory, property, plant, and equipment, and intangible assets.

• Cash

• Accounts receivable

• Inventory

• Property, plant, and equipment

• Intangible assets