Nearly all respondents mentioned being asked questions about Cowen itself, why Cowen, etc.
Most of the questions were very standard fit and technical questions mentioned in the Wall Street Oasis guides. Questions about the financial statements, valuation techniques, etc. There were a few unique questions which are listed below.
SUMMER ANALYST, Equity Research: What was one thing you think you should have done during your prior internship?
SUMMER ANALYST: if 1.5 chickens lay 1.5 eggs in 1.5 days, how many eggs would 3 chickens lay in 3 days?
SUMMER ANALYST: What will you do to get used to working the long hours?
ANALYST, Investment Banking: Would you rather be the best analyst, or the most well-liked? ASSOCIATE: Why not buyside?
D
UFF&P
HELPSA few responses mentioned a group case interview. Nearly every respondent said that the interviews were not too difficult and there were very few unexpected questions. Some of those asked not mentioned in the guides are below.
SUMMER ANALYST: What does Duff & Phelps do?
ANALYST: “There was no modeling test but they will ask pointed questions to determine if you know how to model.”
ANALYST: “Was given a huge data dump in an excel spreadsheet and had 15 minutes to analyze the data and explain how/what I would do to show to management or to place in a report.”
ANALYST: What is a section 338 election?
ANALYST, Investment Banking: “We were divided into groups of 3 and provided a basic case study in which we were asked to value a provided company, create a few PowerPoint slides and then present to a room of employees.”
ANALYST, Investment Banking: How would you value a company with an asset that does not produce any revenue or cash flows, and how would you compare it to a company without said asset?
ANALYST, Investment Banking: What would cause a company with consistent cash flows, solid management, and steady growth to not be desired in a deal?
ANALYST: “1st round was all technical. Superday was all about fit and selling yourself.” ANALYST, Valuation: How would you value this pen?
E
VERCOREMany of those that interviewed at Evercore reported being asked brain teasers. Some of those brain teasers are shown below, others are listed elsewhere within this guide. The interviewers will focus on your prior deal experience if you have any, and a general consensus seems to be that the interviews are very technical in nature and more difficult than average.
SUMMER ANALYST: If I give you two companies with the same revenues, but one has an EBITDA margin of 20% and the other has an EBITDA margin of 40%, and they are trading at the same EBITDA multiple, which company would you purchase and why?
SUMMER ANALYST: Graph WACC vs. cost of debt. Now cost of debt vs. cost of equity. SUMMER ANALYST: How does a better brand impact the financial statements?
SUMMER ANALYST: Walk me through the Income Statement for a brick-and-mortar book retailer like Barnes and Noble, and compare each line item to that of an average manufacturing company. SUMMER ANALYST: “They love to ask a question regarding land write down (trick is land doesn't
depreciate) other than that everything was very straightforward.”
SUMMER ANALYST: What effect does a stock split have on equity value?
ANALYST: You have a cube with sides of length 12. The cube consists of smaller cubes, each with length 1. How many cubes can you see?
ANALYST: What was the single most exciting event in your life?
ANALYST: How would the cost of equity differ between similar companies if one was private and one was public?
ANALYST: “I was a summer analyst elsewhere and the interviewer spent a great deal of time going over the 2 live deals I worked on that summer and went into not only what I did (e.g. modeling, profiles) but also went into the strategic rationale for each deal, what were the drivers of growth and risk in the deals, etc.
ANALYST: What is the dollar change of the S&P 500 from January 1st to now? What percent change is that?
ANALYST: If lily pads in a pond double every minute and will completely cover the pond in 1 hr, how long will it take to cover a quarter the pond?
ASSOCIATE: “They drilled my on specifics and eventually got into some of the greeks and what they represent.”
ASSOCIATE: Walk me through a pitch book for a sell-side where our client is an insurance company. ASSOCIATE: Suppose a company has a loss on sale of $100. Walk us through the financial statement
G
REENHILLA vast majority of those interviewing at Greenhill mentioned that they were asked the most common of the banking interview questions. These included “why banking,” “what are some of the ways you can value a company,” “walk me through a DCF” and “how does X flow through the three financial statements. If you are applying to Greenhill, make sure you have the basics down cold even if you are from a non-finance background. We also encountered a report of one of the strangest brain teasers we have ever seen (see below).
SUMMER ANALYST: “Despite coming from a non-finance background (math and physics double major at a small liberal arts college), I got fairly technical questions.”
SUMMER ANALYST: How do you calculate the beta factor from scratch?
SUMMER ANALYST: Why would you want to work in a smaller bank than a BB? SUMMER ANALYST: What was the most difficult thing you have ever done?
SUMMER ANALYST: During WWII on the Pacific front, some planes would get shot once or twice and get destroyed, the remains dropping into the ocean and irrecoverable. Others would return to base full of bullet holes but still working fine otherwise. If you were an engineer, what would be the most efficient way to find out what was wrong with the planes and how would you do it?”
SUMMER ANALYST: List 10 ways that the 3 financial statements link together and discuss how the items flow through the statements.
ANALYST: Why would you prefer to work at Greenhill to a bulge bracket investment bank where you will be able to see other operations than M&A?
ANALYST: “Seemed to value someone who knows the technicals but can also explain it in a very concise, clear, and articulate manner. Take it with a grain of salt as its just one experience but they really like well spoken people.”
ANALYST: How much does EV change if WACC changes by 1%?
ANALYST: What do you think people will think about you when you say you're a banker?
SUMMER ASSOCIATE: “They asked me why do you want to work here? This is super important at a small bank like Greenhill. You should be able to clearly articulate what about the firm attracts you and
H
ARRISW
ILLIAMS&C
O.
Nearly all of the respondents mentioned receiving the “walk me through a DCF” during their interview. SUMMER ANALYST: What public companies might you use to value a pet food producer using the
public comparables valuation methodology?
SUMMER ANALYST: Why do you want to work in the middle market?
ANALYST: “If you just use the WSO guide close to anything they'll ask you will be in it. Relatively laid back.”
ANALYST: Which of the deals you have worked on have closed, and what was the investment thesis behind each?
ANALYST: How would you value an apple tree?
ANALYST: If we were hired to sell a company that makes product XYZ, who do you think would be some potential buyers.
ANALYST: “They asked me some more advanced accretion/dilution questions. Like 1/3rd cash, 1/3rd debt, 1/3rd equity, gave me PE, tax rates, interest on debt and interest on cash etc.