Investment Banking Summer Analyst Interview Questions and Answers

Enterprise value includes debt and equity value only includes shareholders' equity.

• Enterprise value is the total value of a company, including debt and equity, while equity value only includes shareholders' equity.

• Enterprise value is used to determine the total value of a company to both debt and equity holders, while equity value is used to determine the value available to shareholders.

• Enterprise value is calculated as market capitalization plus debt minus cash, while equity...read more

Valuation methods are techniques used to determine the value of a company or asset.

• Valuation methods include comparable company analysis, precedent transactions analysis, discounted cash flow analysis, and leveraged buyout analysis.

• Comparable company analysis involves comparing the target company to similar publicly traded companies to determine its value.

• Precedent transactions analysis involves looking at the prices paid for similar companies in the past to estimate the targ...read more