Bakers village Interview Questions and Answers

WACC is the weighted average cost of capital. To value a company, one can use various methods such as DCF, comparables, or precedent transactions. A method to decide on project undertaking is NPV analysis.

• WACC is the average cost of all the capital a company has raised

• To value a company, one can use DCF, comparables, or precedent transactions

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

• Comparables involves comparing the company to simila...read more

Covariance measures the relationship between two variables. It measures sensitivity by indicating the direction of the relationship.

• Covariance is a statistical measure that shows how two variables are related to each other.

• It measures the direction of the relationship between two variables.

• A positive covariance indicates that the two variables move in the same direction.

• A negative covariance indicates that the two variables move in opposite directions.

• Volatility is a measure ...read more

Solving two jug problems to obtain a specified amount of water using differently sized jugs.

• Understand the capacity of each jug

• Determine the amount of water needed

• Fill one jug with water and pour it into the other jug

• Repeat until the desired amount is reached

• Use the remaining water in the larger jug to measure the remaining amount needed

• Consider the possibility of multiple solutions

Beta is a measure of a stock's volatility. Value at risk is a statistical measure of potential losses. Formula for beta is Covariance(Stock, Market) / Variance(Market).

• Beta measures a stock's sensitivity to market movements.

• Value at risk is the maximum potential loss that an investment portfolio may suffer within a given time frame.

• Beta formula is calculated by dividing the covariance of the stock and market returns by the variance of the market returns.

• Beta values greater th...read more

A batsman can score a maximum of 264 runs in an ODI.

• The maximum number of runs a batsman can score in an ODI is limited by the number of balls bowled and the number of boundaries hit.

• The maximum number of balls bowled in an ODI is 300, assuming no extras are bowled.

• If a batsman hits a boundary off every ball they face, they can score a maximum of 240 runs.

• If a batsman hits sixes off every ball they face, they can score a maximum of 360 runs, but this is highly unlikely.

• The cu...read more