Add office photos
Verity Knowledge Solutions logo
Engaged Employer

Verity Knowledge Solutions

Verified
2.8
based on 123 Reviews
Video summary
Filter interviews by
Investment Banking Analyst
Clear (1)

Verity Knowledge Solutions Investment Banking Analyst Interview Questions and Answers

Updated 15 Nov 2024

Q1. What goes in the line items of Income Statement?

Ans.

Line items in an Income Statement include revenues, expenses, gains, and losses.

  • Revenue: Sales of goods or services

  • Cost of Goods Sold (COGS): Direct costs related to producing goods sold

  • Gross Profit: Revenue minus COGS

  • Operating Expenses: Costs related to running the business (e.g. salaries, rent)

  • Operating Income: Gross profit minus operating expenses

  • Interest Expense: Cost of borrowing money

  • Net Income: Total profit after all expenses and taxes

  • Other Income/Expenses: Non-operati...read more

Add your answer
right arrow

Q2. Explain the impact of share buyback on the 3 financial statements.

Ans.

Share buybacks impact financial statements by reducing outstanding shares, increasing EPS, and affecting cash flow.

  • Share buybacks reduce the number of outstanding shares on the balance sheet.

  • This can increase earnings per share (EPS) as the same amount of earnings is distributed among fewer shares.

  • On the income statement, share buybacks can lead to higher EPS and potentially higher stock prices.

  • Share buybacks can also impact the cash flow statement by reducing cash reserves u...read more

Add your answer
right arrow

Q3. Impact of bonus share issue on 3 financial statements.

Ans.

Bonus share issue impacts financial statements by increasing equity on balance sheet, reducing retained earnings, and affecting earnings per share.

  • Increase in equity on balance sheet due to additional shares issued at no cost

  • Reduction in retained earnings as company's profits are distributed among more shareholders

  • Impact on earnings per share as number of shares outstanding increases

Add your answer
right arrow

Q4. What are the 3 financial statements and key ratios

Ans.

The 3 financial statements are Income Statement, Balance Sheet, and Cash Flow Statement. Key ratios include ROE, ROA, and Current Ratio.

  • 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 tracks the flow of cash in and out of a company.

  • Key ratios like Return on Equity (ROE), Return on Assets (ROA), and Current Ratio are used to analyze...read more

Add your answer
right arrow
Discover Verity Knowledge Solutions interview dos and don'ts from real experiences

Q5. What is Investment Banking?

Ans.

Investment banking involves providing financial advisory services to corporations, governments, and other institutions for raising capital, mergers and acquisitions, and other financial transactions.

  • Helps companies raise capital through issuing stocks or bonds

  • Assists in mergers and acquisitions by providing valuation and negotiation services

  • Provides financial advisory services for various transactions such as IPOs, debt offerings, and restructuring

  • Offers risk management and h...read more

Add your answer
right arrow

Q6. What is beta and alpha

Ans.

Beta and alpha are measures of a stock's volatility and performance compared to a benchmark index.

  • Beta measures the volatility of a stock in relation to the overall market. A beta of 1 means the stock moves in line with the market, while a beta greater than 1 indicates higher volatility and less than 1 indicates lower volatility.

  • Alpha measures the excess return of a stock compared to its expected return based on its beta. A positive alpha indicates the stock outperformed its ...read more

Add your answer
right arrow

Q7. Comparable company analysis

Ans.

Comparable company analysis involves evaluating a company's value by comparing it to similar companies in the same industry.

  • Identify comparable companies based on industry, size, growth prospects, and financial metrics.

  • Collect data on key financial metrics such as revenue, EBITDA, and multiples like P/E ratio.

  • Calculate valuation multiples for the comparable companies and apply them to the target company to estimate its value.

  • Adjust for differences in size, growth, and risk fa...read more

Add your answer
right arrow

Q8. Beta and it's types

Ans.

Beta is a measure of a stock's volatility in relation to the market. There are three types of beta: levered beta, unlevered beta, and adjusted beta.

  • Beta measures a stock's volatility in relation to the market. A beta of 1 means the stock moves in line with the market, while a beta greater than 1 is more volatile and less than 1 is less volatile.

  • Levered beta includes the effects of debt on a company's capital structure.

  • Unlevered beta removes the effects of debt and reflects th...read more

Add your answer
right arrow

Q9. Cost of capital

Ans.

Cost of capital is the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

  • Cost of capital is the weighted average cost of debt and equity used by a company to finance its operations.

  • It is the minimum return that a company must earn on its investments to maintain its market value and attract investors.

  • Calculating cost of capital involves determining the cost of debt, cost of equity, and the company's capital structure.

  • For ...read more

Add your answer
right arrow
Contribute & help others!
Write a review
Write a review
Share interview
Share interview
Contribute salary
Contribute salary
Add office photos
Add office photos

Interview Process at Verity Knowledge Solutions Investment Banking Analyst

based on 6 interviews
Interview experience
4.0
Good
View more
interview tips and stories logo
Interview Tips & Stories
Ace your next interview with expert advice and inspiring stories
Recently Viewed
COMPANY BENEFITS
Dilip Buildcon
304 benefits
COMPANY BENEFITS
Dilip Buildcon
304 benefits
COMPANY BENEFITS
IRB Infrastructure
60 benefits
COMPANY BENEFITS
KNR Constructions
20 benefits
JOBS
Browse jobs
Discover jobs you love
INTERVIEWS
FLSmidth
No Interviews
INTERVIEWS
Lowe's
10 top interview questions
CAMPUS PLACEMENT
Manipal University
INTERVIEWS
Dell
10 top interview questions
INTERVIEWS
Dell
5.6k top interview questions
Share an Interview
Stay ahead in your career. Get AmbitionBox app
play-icon
play-icon
qr-code
Helping over 1 Crore job seekers every month in choosing their right fit company
75 Lakh+

Reviews

5 Lakh+

Interviews

4 Crore+

Salaries

1 Cr+

Users/Month

Contribute to help millions

Made with ❤️ in India. Trademarks belong to their respective owners. All rights reserved © 2024 Info Edge (India) Ltd.

Follow us
  • Youtube
  • Instagram
  • LinkedIn
  • Facebook
  • Twitter