Verity Knowledge Solutions Investment Banking Associate Interview Questions and Answers

Q1. Linkage between the 3 financial analysis
Ans. 
The linkage between the 3 financial analysis involves understanding how the income statement, balance sheet, and cash flow statement are interconnected.
• Income statement shows the company's profitability over a period of time.

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

• Cash flow statement tracks the inflow and outflow of cash within the company.

• Changes in one stateme...read more
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Q2. What is CFO? How do you calculate it
Ans. 
CFO stands for Cash Flow from Operations. It is a measure of a company's ability to generate cash from its core business activities.
• CFO is calculated by starting with net income and adding back non-cash expenses (such as depreciation and amortization) and adjusting for changes in working capital.

• Formula: CFO = Net Income + Non-cash Expenses + Changes in Working Capital

• CFO is a key metric used by investors and analysts ...read more
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Q1. They ask rapid questions.
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Q1. Whta is PE ratio ?
Ans. 
PE ratio is the ratio of a company's stock price to its earnings per share (EPS).
• PE ratio helps investors determine the value of a company's stock.

• A high PE ratio may indicate that a stock is overvalued, while a low PE ratio may indicate undervaluation.

• PE ratio can vary by industry and should be compared to peers within the same industry.

• Formula: PE ratio = Stock price / EPS

• Example: If a company's stock price is $50 an
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Q1. Basic accounting principles
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Basic Accounting principles

Q1. DCF Valuation; Financial statements
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Q2. Finann statements
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Q1. Work experience; Personal hobbies
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