Nomura Holdings Analyst Interview Questions and Answers for Experienced

Basic quants, accounting and general ability

Q1. What is eps and diluted equity
Ans. 
EPS stands for earnings per share, which is a company's profit divided by the number of outstanding shares. Diluted equity refers to the total value of a company's shares if all potential shares were converted into common stock.
• EPS is calculated by dividing a company's net income by the number of outstanding shares.

• Diluted equity takes into account potential shares that could be converted into common stock, such as sto...read more
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Q2. What is enterprise value
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Enterprise value is a measure of a company's total value, taking into account its market capitalization, debt, and cash.
• Enterprise value = Market capitalization + Total debt - Cash and cash equivalents

• It represents the total value of a company that would need to be paid by an acquirer in a takeover

• EV is used to compare companies with different capital structures or levels of debt

• It is a more comprehensive measure than
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Q1. Difference between fcff and fcfe
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FCFF is the cash flow available to all providers of capital, while FCFE is the cash flow available to equity shareholders.
• FCFF includes debt and equity holders, while FCFE only includes equity holders.

• FCFF is used to value the firm as a whole, while FCFE is used to value equity.

• FCFF is calculated as EBIT(1-Tax Rate) + Depreciation - Capex - Change in Working Capital, while FCFE is calculated as FCFF - Interest(1-Tax Ra...read more
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Q2. Impairment of assets
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Q1. What are the 3 financial Statement's?
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The 3 financial statements are the income statement, balance sheet, and cash flow statement.
• Income statement shows a company's revenues and expenses over a period of time.

• Balance sheet provides a snapshot of a company's financial position at a specific point in time.

• Cash flow statement shows how changes in balance sheet and income statement affect cash and cash equivalents.
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Q2. What are types of Depreciation?
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Types of depreciation include straight-line, double declining balance, units of production, and sum-of-the-years-digits.
• Straight-line depreciation: Allocates an equal amount of depreciation expense each year.

• Double declining balance: Accelerates depreciation by applying a fixed rate to the book value of the asset.

• Units of production: Depreciation is based on the actual usage or production of the asset.

• Sum-of-the-years-...read more
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Q3. Explain Components of Balance sheet?
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Balance sheet components include assets, liabilities, and equity.
• Assets: Resources owned by the company such as cash, inventory, and property.

• Liabilities: Debts and obligations owed by the company such as loans and accounts payable.

• Equity: Represents the owner's stake in the company's assets after deducting liabilities.

• Balance sheet equation: Assets = Liabilities + Equity.
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Q1. About cv and yourself
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