20+ H.G. Infra Engineering Interview Questions and Answers

DCF is a valuation method used to estimate the value of an investment based on its future cash flows.

• DCF involves projecting future cash flows and discounting them back to their present value.

• It can be applied to equity by estimating the future cash flows of a company and discounting them back to their present value to determine the company's intrinsic value.

• DCF is commonly used in investment banking and finance to value companies and assets.

• It is important to use realistic a...read more

Market cap is the total value of a company's outstanding shares. It's calculated by multiplying the current stock price by the number of shares outstanding.

• Market cap is short for market capitalization.

• It's a measure of a company's size and value.

• It's calculated by multiplying the current stock price by the number of shares outstanding.

• For example, if a company has 1 million shares outstanding and the current stock price is $50, the market cap would be $50 million.

• Market cap ...read more

Call option holder would gain.

• A call option gives the holder the right to buy the security at a predetermined price, known as the strike price.

• If the price of the security is showing an upward trend, the call option holder can exercise their option and buy the security at the lower strike price, then sell it at the higher market price for a profit.

• On the other hand, a put option gives the holder the right to sell the security at a predetermined price.

• If the price of the secur...read more

Enterprise value is the total value of a company, including debt and equity.

• Enterprise value is calculated by adding market capitalization, debt, and minority interest, and then subtracting cash and cash equivalents.

• It represents the total value of a company that an acquirer would have to pay to take over the company.

• Enterprise value is a more accurate representation of a company's value than market capitalization alone.

• For example, if a company has a market capitalization of...read more

A put option holder would exercise the option when the underlying asset's price is below the strike price.

• Put option holders exercise when the market price of the underlying asset is lower than the strike price.

• They exercise to sell the asset at a higher price than the market price.

• Put options are often exercised before the expiration date if the market conditions are favorable.

• Exercising a put option allows the holder to profit from a decline in the price of the underlying a...read more

Valuation methods include market, income, and asset-based approaches, each used for different purposes.

• Market approach: based on comparable sales of similar assets in the market

• Income approach: based on the present value of expected future income generated by the asset

• Asset-based approach: based on the value of the asset's tangible and intangible assets

• Market approach is commonly used for real estate, income approach for businesses, and asset-based approach for liquidation or...read more

Hedge funds are investment funds that use various strategies to generate high returns for their investors.

• Hedge funds are typically only available to accredited investors due to their high-risk nature.

• They often use leverage and derivatives to amplify returns.

• Hedge funds can invest in a wide range of assets, including stocks, bonds, commodities, and currencies.

• Some hedge funds employ long-short strategies, where they simultaneously buy and sell securities to profit from both ...read more

Hedge funds are alternative investment vehicles that pool capital from accredited investors, while private placements are securities offerings to a select group of investors.

• Hedge funds are typically only available to high-net-worth individuals and institutional investors.

• They employ various investment strategies, such as long-short equity, global macro, and event-driven.

• Hedge funds often use leverage and derivatives to amplify returns.

• Private placements are offerings of secu...read more

The question is about the job description.

• Clarify the responsibilities and duties of the job

• Ask about the required skills and qualifications

• Inquire about the work environment and company culture

Hedge funds are actively managed investment funds that use various strategies to maximize returns, while mutual funds are pooled funds managed by professionals to invest in a diversified portfolio of securities.

• Hedge funds are typically only available to accredited investors, while mutual funds are open to the general public.

• Hedge funds often have higher fees and require a larger minimum investment compared to mutual funds.

• Hedge funds have more flexibility in their investment...read more

Name screening is conducted by comparing names against watchlists or databases to identify any potential matches.

• Names are compared against watchlists, sanctions lists, politically exposed persons lists, and other databases.

• Advanced screening tools use algorithms to analyze variations in names, such as misspellings or aliases.

• Screening can be done manually or through automated software.

• Matches are further investigated to determine if they pose a risk or require further action...read more

Audits are conducted to ensure accuracy, compliance, and reliability of financial statements and internal controls.

• To ensure accuracy and reliability of financial statements

• To ensure compliance with laws and regulations

• To evaluate the effectiveness of internal controls

• To detect and prevent fraud or errors

• To provide assurance to stakeholders and investors

Stages of Audit include planning, fieldwork, reporting, and follow-up.

• Planning: Establishing audit objectives, scope, and procedures.

• Fieldwork: Collecting and analyzing evidence to support audit findings.

• Reporting: Communicating audit results and recommendations to stakeholders.

• Follow-up: Ensuring implementation of audit recommendations and monitoring progress.

• Example: Planning may involve reviewing previous audits and identifying key risks.

• Example: Fieldwork may include test...read more

NAV is calculated by subtracting liabilities from assets and dividing by the number of outstanding shares.

• Calculate the total value of assets in the fund

• Subtract any liabilities or expenses from the total assets

• Divide the remaining value by the number of outstanding shares to get the NAV

• For example, if a fund has $1,000,000 in assets and $100,000 in liabilities with 100,000 outstanding shares, the NAV would be ($1,000,000 - $100,000) / 100,000 = $9

CDD process stands for Customer Due Diligence process, which is a set of procedures used to verify the identity of customers and assess their risk levels.

• CDD process involves collecting information about customers such as their name, address, and identification documents.

• It also includes verifying the information provided by customers through various means such as official databases or third-party sources.

• The purpose of CDD process is to prevent money laundering, terrorist fi...read more

Fixed income products are investments that pay a fixed interest or dividend income until maturity.

• Fixed income products include bonds, certificates of deposit (CDs), and preferred stocks.

• Investors receive regular interest payments from fixed income products.

• The principal amount is returned to the investor at maturity.

• Fixed income products are considered less risky than stocks but offer lower potential returns.

Internal audit stages include planning, fieldwork, reporting, and follow-up.

• Planning stage involves setting objectives, scope, and methodology.

• Fieldwork stage includes gathering and analyzing data, testing controls, and documenting findings.

• Reporting stage involves communicating results to management and stakeholders.

• Follow-up stage includes monitoring implementation of recommendations and assessing progress.

• Examples: Planning - creating an audit plan; Fieldwork - conducting ...read more

The longest common prefix is the longest sequence of characters that is common to all strings in an array.

• Iterate through the characters of the first string

• Compare each character with the corresponding character in the other strings

• Stop when a character doesn't match or when the end of any string is reached

• Return the common prefix

CBV process refers to Cost-Based Valuation process used in finance to determine the value of a company or asset.

• CBV process involves analyzing the costs associated with a company or asset to determine its value.

• It takes into account the expenses incurred in production, marketing, distribution, and other operational activities.

• CBV process helps in understanding the financial health and potential profitability of a company or asset.

• Examples of costs considered in CBV process in...read more