UBS Summer Finance Intern Interview Questions and Answers

I chose to work for a bank because of my interest in finance and the opportunity to work with a diverse range of clients.

• I have always been interested in finance and banking

• I wanted to work with a diverse range of clients and industries

• I saw an opportunity to develop my skills in financial analysis and risk management

• I was attracted to the stability and growth potential of the banking industry

• I wanted to be part of a t...read more

A dividend payout by a 50% JV affects the parent company's financial statements through the equity method.

• The parent company will record its share of the JV's dividend income as a decrease in the investment account on the balance sheet.

• The parent company's income statement will reflect its share of the JV's earnings, including the dividend income.

• The parent company's cash flow statement will show an increase in cash fr...read more

EV/EBITDA is a valuation metric used to evaluate a company's financial performance and potential for growth.

• EV/EBITDA compares a company's enterprise value (EV) to its earnings before interest, taxes, depreciation, and amortization (EBITDA).

• It is useful for comparing companies in the same industry or sector.

• A lower EV/EBITDA ratio indicates that a company may be undervalued, while a higher ratio may indicate that a com...read more

A new litigation liability can negatively impact the enterprise value.

• Litigation liability can lead to financial losses for the company

• It can also damage the company's reputation and affect future earnings

• The impact on enterprise value depends on the severity of the liability and the company's ability to manage it

• Investors may also perceive the company as riskier, leading to a decrease in stock price

• Examples include la...read more

Yes, I am following the euro zone crisis closely.

• The crisis began in 2009 with Greece's debt crisis and has since spread to other countries in the euro zone.

• The European Central Bank has implemented various measures to address the crisis, including quantitative easing and low interest rates.

• Brexit has also added to the uncertainty in the euro zone.

• Recent updates include the approval of a €750 billion recovery fund to h...read more

Valued Suzlon using DCF and ratios. Assumed growth rates based on industry trends and company performance.

• Used DCF to estimate the intrinsic value of Suzlon based on future cash flows

• Used P/E ratio and EV/EBITDA ratio to compare Suzlon's valuation with industry peers

• Assumed growth rates based on industry trends and Suzlon's historical performance

• Took into account Suzlon's debt levels and interest expenses in the DCF ca...read more

Indian IT sector has a positive outlook with growth drivers like digital transformation and cloud adoption, but faces challenges like talent shortage and increasing competition.

• Growth drivers include digital transformation, cloud adoption, and increasing demand for automation and AI solutions.

• Challenges include talent shortage, increasing competition from global players, and regulatory changes.

• Stock picks include TCS, ...read more

Credit appraisal of SME units involves assessing their financial health, management capabilities, market position, and repayment capacity.

• Analyze financial statements, including balance sheets, income statements, and cash flow statements

• Evaluate management team and their experience in the industry

• Assess market position and competition

• Review credit history and repayment capacity

• Consider collateral and guarantees

• Use cred...read more

Ratios like gross margin, inventory turnover, and return on assets are used to evaluate a manufacturing unit.

• Gross margin ratio measures the profitability of the manufacturing unit by comparing the revenue and cost of goods sold.

• Inventory turnover ratio measures how efficiently the manufacturing unit is managing its inventory.

• Return on assets ratio measures how effectively the manufacturing unit is using its assets to ...read more