IBankingFAQ https://validator.w3.org/feed/docs/rss2.html October 6, 2009 October 8, 2009 Does the Federal Reserve’s loose monetary policy actually hurt employment? What is economics? Coaching FAQs December 8, 2015 FAQ Categories About EconomicsFAQ Ask a question… You have 100 balls (50 black balls and 50 white balls) and 2 buckets. How do you divide the balls into the two buckets so as to maximize the probability of selecting a black ball if 1 ball is chosen from 1 of the buckets at random? Interview and Job Search Coaching About me Click to jump to questions regarding: A company makes a $100 cash purchase of equipment on Dec. 31. How does this impact the three statements this year and next year? Same question as the previous but the company finances the purchase of equipment by issuing debt rather than paying cash. Continuing with the last question, on Jan. 1 of Year 3 the equipment breaks and is deemed worthless. The bank calls in the loan. What happens in Year 3? If a company incurs $10 (pretax) of depreciation expense, how does that affect the three financial statements? Why do private equity firms use leverage when buying a company? Let’s say you run an LBO analysis and the private equity firm’s return is too low. What drivers to the model will increase the return? Walk me through an LBO analysis… What are some characteristics of a company that is a good LBO candidate? Why might one company want to acquire another company? Explain the concept of synergies and provide some examples. What is goodwill and how is it calculated? What factors can lead to the dilution of EPS in an acquisition? If a company with a low P/E acquires a company with a high P/E in an all stock deal, will the deal likely be accretive or dilutive? Walk me through an accretion/dilution analysis… What are the formulas for unlevering and levering Beta? Which is less expensive capital, debt or equity? When using the CAPM for purposes of calculating WACC, why do you have to unlever and then relever Beta? What is Beta? August 3, 2010 September 8, 2010 Self Study FAQs Financial Modeling Self Study About January 27, 2010 Home August 16, 2012 How does ??? impact the three financial statements? Contact How do we use the Treasury Stock Method to calculate diluted shares? July 12, 2010 Why is the world so messed up? March 3, 2013 Can you recommend any books about finance and the technical aspects of investment banking? Are there any good books about life as an investment banker? Terms of Service Privacy Policy Welcome to IBankingFAQ