Investment Banking Nerd

Finance Related  Question 1 : What are the common or basic Debt to Equity Ratio ? Answer 1 : 2:1 Questione 2 : What are the two source of funds for Company/Project which is showed in Balance Sheet in Liability Side. Answer 2 : Debt (Loans/Debentures) and Equity (Promoters Funds and Capital Raise through Investors) Research Related  Question 1 : If I have to take out the financial statements of a company of a listed and unlisted company, how will I do that ? Answer 1 : For the listed company, it is easy as we can take out the financial statement from it's website as, as per the law of the land India and others too a listed company have to disclose certain information publicly which includes Financials and the disclose it with the help of their wesbite.  While we can also take financial statements and other financial or legal information from NSE and BSE. If we change the location from India to France we can take it from EURONEXT.  For an unlisted company either we ca...

After introduction and all the interviewer would hoop you into technical or mathematical questions. Let me help you out in understanding the basics of the same so that you can understand the most difficult ones.  Let's start !! Question 1  How much you will pay for a company that generates ₹ 100 Crore of cash flow every single year into eternity ? Eternity means time that has no end  So basically they want to know that does you know the formulas or not ? So what formula will be used here ? The Perpetuity Formula Before answering the question keep in mind that whatever you answer or whatever you say in an interview the interviewer will use it as a content to question you against.  SO What is Perpetuity Formula ? Perpetuity Formula is what has been asked in the question, the question is the defination of the Formula. A Perpetuity Formula is used to calculate the present stream of cash flow that is expected to continue for indefinitely.  Answer of the question wil...