Silicon Valley Bank Analyst Interview Questions and Answers

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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