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Corporate Finance 2004-2005 Interview Prep - Finance

Corporate Finance 2004-2005 Interview Prep - Finance. Mark Pacyna / Manoj Ramnani VP’s for Corporate Finance Ross Business School Finance Club. Corporate Finance Intern Recruiting Roadmap. Company Presentations and Events Beginning September 20 OCD Resume Reviews / Career Counseling

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Corporate Finance 2004-2005 Interview Prep - Finance

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  1. Corporate Finance2004-2005Interview Prep - Finance Mark Pacyna / Manoj Ramnani VP’s for Corporate Finance Ross Business School Finance Club

  2. Corporate Finance Intern Recruiting Roadmap • Company Presentations and Events • Beginning September 20 • OCD Resume Reviews / Career Counseling • September & October • Meet The Interns • November • Corporate Finance Forum • November 5 • OCD Mock Interviews / Interview Preparation • October through early December – Start EARLY! • Finance Club Mock Interviews • Early January • Internship Interviews • Beginning mid-January

  3. Interviewing Basics - Finance • This review is NOT all encompassing • Use this ONLY as a guide • Provided to set expectations for technical Interviews • Will not go into details of accounting and finance • Follow Accounting and Finance classes for best results • Refer to Wet Feet, Vault guides for detailed technical questions

  4. Discounted Cash Flow (DCF)

  5. Free Cash Flow

  6. CAPM - Re • Re = Cost of Equity Capital / Expected rate of return on equity • Rf = Risk Free Discount Rate • 10 Year Note: 4.3% • Beta = Equity Beta • Definition: Variation with benchmark • Source: Bloomberg or Yahoo • Rm – Rf = Risk Premium

  7. WACC • E: Market value of equity • D: Market value of debt • Re = Cost of equity capital (CAPM) • Rd = Discount rate of firm’s debt • t = Tax rate

  8. Terminal Value • FCF: Terminal Free Cash Flow • g : Long term growth rate (2.5% to 5%) • Re = Cost of equity capital (CAPM) • r d = Expected rate of return

  9. Remember: Discount TY FCF to PV

  10. Firm Value +

  11. Other Questions • Economic Value Added (EVA) • Adjusted Present Value (APV) • NPV Vs. IRR • Financial metrics relevant to the company • R&D/Sales for technology company • How to decide to undertake a project

  12. Internship Interviews • Resume Drops – 12/30 • Check Impact for exact dates • DO NOT wait till drop deadline • Some companies have early deadlines • Some companies close drops early • Write and Review Cover Letters • Reach out to contacts / alumni in companies as appropriate

  13. Internship Interviews • Interviews Begin – 01/18 • Know your resume • Know your story • Research companies • Know the technical stuff • Finance Club Super Saturday in January

  14. Finance 580 – Options & Futures 615 – Valuations 621 – Corporate Financial Policy 622 – Financial Engineering 609 – Fixed Income Analysis. Accounting 564 – Corporate Financial Reporting 624 – M&A Accounting 712 – Capstone Course CSIB 669 – Advanced Competitive Analysis Marketing 601 – Strategic Market Planning (Links) MO 512 – Bargaining and Influencing Elective Recommendations

  15. Final 2004 Meeting • Best of luck on finals and have a great break!

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