# investment banking summer analyst Interview Questions

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investment banking summer analyst interview questions shared by candidates### If someone offered you $1000 today or paid out at $100 a month over the next ten months, which would you take?

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The answer should be the $1000...$1000 today is worth more than $1000 ten months from now or $100 every month for 10 months due to the time value of money. Less

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Money loses value over time...

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I think it depends largely on the market. 1000 dollars a couple years ago if put into the right fund would be nice now. With how long the market has been expanding It would be a tough choice now. Additionally, they might be checking personality on this. Do you want your money now, or do you like something steady even if the value depreciates over time? Less

### If I stacked pennies from the ground to the top of the Empire State Bldg, would they all fit onto a floor of the building?

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1. Yes on the terrace. 2. Conver pennies into Dollers on better brokerage and get it fit into a bag. Now you can more money fit at any floor. Less

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The Empire state building is approximately 1200 ft. I'm guessing there are 100 floors. This means 12 ft of single stack pennies per floor. 100 of them. I think we can fit 100 stacks of pennies on any floor in New York City. Less

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Yes. 1) break coins into stacks in relation to each window/floor (gives height of floor) 2) highly likely sum of stacks is less than the square of the floor height I'm sure there's another way to answer this as per Vault, though I like to come up with diff answers instead. Less

### What is the probability of you walking out of this room and seeing someone without the average number of legs.

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100% Average will be just under 2

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so it should be 0% not 100%. )

### Which valuation technique gives the highest value?

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Depends highly of the DCF assumptions. In practice, it is often the DCF but if we set a certain set of assumption it could give us the lowest value as well. Deal comps have high constant value because of the market premium. Less

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Precedent because of the premium

### What is a shareholder's right's plan? (poison pill)

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It is a safety plant agains hostile takeovers that enables currently shareholder, upon a hostile buyer gaining a certain percentage of ownership (say 15%), Less

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Excuse my first response. It is a safe block against hostile takeovers that enables shareholders, upon a hostile bidder acquirers a certain percent ownership stake (say 15%), to purchase additional shares at a deep discount. This effectively dilutes the hostile bidders ownership stake. Less

### Some CS questions: There is a set of n - 1 numbers from the range 1 to n, determine the smallest number that doesn't exist in the set. Write a program to output all permutations of numbers 1 to N.

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If all number are distinct than it is easy: just sum up 1:n and subtract sum of your numbers. If they are not distinct sort both arrays and subtract first n-1 elements from each other. The first non-zero will give the index of the missing number. Permutations is more or less standard, there are many algorithms available. Less

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Use bucket sort,maintain a array of all zeros and size N put 1 for every number processed in the corresponding index and again go through the arrayto get the first index with a zero entry in the array. Less

### Assume a company has 500K of senior debt trading at 50%, and 250K of sub debt trading at 20%. Therefore, the market value of each is 250K and 40K, respectively. According to BIWS, this also means that creditors expect to recover 50% of the senior debt and 20% of the sub debt. Why is that so?

2 Answers### You have a cube of 100cm*100*100cm. You poor 1 liter of water into the cube, how high will the cube be filled with water in centimeters?

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1L=1000ml=1m3=100cm*100cm*100cm 100cm

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1 liter of water is equal to 1000 cubic centimeters, so you need a base*height that equals 1000 cubic centimeters. Since water will fill the entire bottom of the cube first we know the base is the two sides times each other (100*100). This equals 10,000 so the height must be 0.1 centimeters to give a total of 1000 cubic centimeters. Less