Corporate Finance 20042005 Interview Prep Finance

1
Corporate Finance2004-2005Interview Prep -
Finance

• Mark Pacyna / Manoj Ramnani
• VPs for Corporate Finance
• Ross Business School Finance Club

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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

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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

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Discounted Cash Flow (DCF)
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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 firms 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

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Remember Discount TY FCF to PV
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Firm Value

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Other Questions

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

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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

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Internship Interviews

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

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Elective Recommendations

• Finance
• 580 Options Futures
• 615 Valuations
• 621 Corporate Financial Policy
• 622 Financial Engineering
• 609 Fixed Income Analysis.
• Accounting
• 564 Corporate Financial Reporting
• 624 MA Accounting
• 712 Capstone Course

• CSIB
• 669 Advanced Competitive Analysis
• Marketing
• 601 Strategic Market Planning (Links)
• MO
• 512 Bargaining and Influencing

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Final 2004 Meeting

• Best of luck on finals and have a great break!