Finance Interview Question Bank

Equity Research

Financial Planning and Analysis

Credit Risk

We, at Mentor Me Careers, have been able to place students in core finance roles like Equity Research, Financial Planning and Analysis, Financial Analyst, Credit Risk etc.

With our experience in placing students in such roles, we bing to you a comprehensive bank of interview questions.

Excel Tests

The first thing that is tested for any Finance job role is the proficiency in Excel.

Here, you’re given a problem statement and a dataset. You need to download the files and work on it to answer the questions.

There is no time limit to this quiz as the objective of this quiz is for you to understand and learn.

2228

Created on February 07, 2023 By

mentorme78

Is CFA for me?

Use this CFA eligibility calculator, to check if the CFA program is for you.

Fill in these details to take the quiz for CFA.

1 / 5

The CFA program requires the following commitment;

300 Hours of self study at each level
4000 Hours of investment expereince after or during the course
Extensive practice.

Do you think, you are at the stage to commit this?

Yes absoultely

I am not sure but I am optimist

I am just exploring

2 / 5

Which of the following roles, do you think you want to make a career on?

Accounting

Auditing

Financial research analyst

Personal finance

Investment strategist

3 / 5

What is the main source of motivation for CFA Program?

Increment in salary

Understanding the depths of Investment

To add a qualification in my resume

4 / 5

Have you ever actively taken keen interest in investments. For example reading books on investments, invested in stocks or mutual funds etc?

Yes

5 / 5

Do you struggle with mathematical calculations?

Yes

Average

Your score is

The average score is 0%

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Created on March 09, 2023 By

mentorme78

Equity Research Case Based Interview Questions

After solving the case given on the template, use this quiz to check if your calculations are right.

1 / 3

What is the aggregate net margin of all companies?

14%

20%

29.82%

2 / 3

What is the total number of companies in Utilities sector?

3 / 3

After solving the case, select the following information,Fill in the blanks in cells using a relevant function. What is the Market capitalisation and Net income of 2015 of AAPL?

863.9 , 49409

279.1, 10060

991.3, 49409

Your score is

The average score is 17%

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Finance Tests

Building and interpreting Financial Statements of any company is the key part of any investment role. Interviewers test this by conducting a finance test where they test your application skills in Financial Statements as well as your modelling skills.

Created by

mentorme78

Investment Banking Interview

This is sample replica of a real investment banking interview. Use this mock to assess,if you are prepared and which areas you lack knowledge for.

1 / 14

At 200 million dollars of revenue, the company has Net margin of 25%, and a dividend payment ratio of 20% but at the same time company has decided to use the same dividend payout money to repurchase $5,000,000 worth of shares. What will the effect be on retained earnings?

o $35,000,00

o $45,000,00

o $40,000,00

o $50,000,00

2 / 14

company A, had invested $1,000,000 in Company B in the year 2015 which is sold now and received $50,000,000. Company A will report $50,000,000 as proceeds from the sale of assets in

o Operating income

o investing cash flow

o operating cash flow

3 / 14

There are two companies, one which pays dividends and the other does not. Which one will have a higher ROE?

Both will have same

The one that doesn't pay dividend

The one that pays diviend

4 / 14

Which of the following statements is CORRECT regarding the reporting of earnings per share (EPS)?

The EPS when antidilutive securities are converted into shares of common stock is less than basic EPS.

Basic EPS can be less than diluted EPS.

Diluted EPS must be less than or equal to basic EPS.

Basic EPS can be less than diluted EPS.

5 / 14

Company has net income of $50, a working capital investment of $4, beginning fixed assets of $500, ending fixed assets of $530, depreciation of $27.00, Income tax of $5. what is FCFE?

$98

$43

$38

6 / 14

A key limitation of balance sheets in financial analysis is that:

Liquidity and solvency ratios require information from other financial statements

Some items are recognized when they are unlikely to reflect a flow of economic benefits

Different balance sheet items may be measured differently

Balance sheet values may use a mixture of measurement bases (historical cost, fair value, etc.). As a result, balance sheet values of assets, liabilities, and equity may not reflect their intrinsic values. Balance sheets provide the information necessary to calculate the firm's solvency and liquidity ratios. Items are recognized on the balance sheet only if a flow of future economic benefits to or from the firm is probable.

Done

7 / 14

If depreciation increases by 100. While revenue is 1000 and existing depreciation is 50, the tax rate is 30%. Then

Net Income Reduces by 14%

Net Income Increases by 14%

CFO Increases by 5%

8 / 14

If management decided to increase all the future credit purchase by 10 more days, how will it impact cash conversion cycle ?

o decrease

o no change

o increase

9 / 14

Nasper's originally invested in Flipkart in 2012 and has invested 616 million dollars over a period of time. naspers stake in Flipkart sold to Walmart for 2.2 billion dollars. Walmart will have to withhold 10% of the amount and pay the same to the Indian government as tax deducted. Nasper’s balance sheet will

o no change in nasper’s balance sheet

o increase by one .36 billion dollars

o increase by 1.9 8 billion dollars

o Reduce by 616 million dollars

10 / 14

Which of the following transactions is most likely to be recognized on a firm's statement of changes in equity?

Declaring a dividend on common shares

Investing cash in an exchange-traded fund

Buying a machine from an equipment dealer

Declaring a dividend decreases shareholders' equity and is reflected on the statement of changes in shareholders' equity. Buying a machine is unlikely to change shareholders' equity at the time of purchase. Investing cash in a security is an exchange of one asset for another and is also unlikely to change shareholders' equity at the time of the investment.

11 / 14

A firm has net sales of $3,500, earnings after taxes (EAT) of $1,000, depreciation expense of $500, cost of goods sold (COGS) of $1,500, and cash taxes of $500. Also, inventory decreased by $100, and accounts receivable increased by $300. What is the firm's cash flow from operations?

$1,800

$1,200

$1,300

12 / 14

Company a has business of software development. Company has contract from BOB on 1st February 2019 to build cash management software for them. Total contract value at hundred $1,000,000. BOB has given 50% payment at the time of placing the order and 50% after delivery of second phase. Product will be delivered in three phases, first phase (30%) will be delivered at December 2019, second in June 2020 (20%) and 3rd in March 2021 (50%). What will be the financial impact for company a for calendar year FY 2019?

o Revenue of $50,000,00 and deferred revenue of $50,000,00

revenue of $300,0000 and deferred revenue of $20,000,00

o Revenue of 1 million dollars

o revenue of $15,000,00 and deferred revenue of 3.5 million

13 / 14

Company A, an Indian company supplying software to USA. USD is expected to appreciate against INR, whereas inflation is expected to rise in India. The company has a policy of 100% hedge for all the billings. How will this impact the total revenue of the company?

decrease

o Increase

o no change

14 / 14

Watch the below interview of Titan CEO First.

https://www.youtube.com/watch?v=nzFUVL7cYWw

What is the reason for Titan Missing its target benchmarks?

Covid 19

Low company growth versus Retail Growth

Higher Investments

Your score is

The average score is 51%

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Simple Interest MCQ Questions

1 / 15

If the principal is $1800, the rate is 6%, and the time is 2.5 years, what is the Simple Interest?

$200

$270

$300

2 / 15

How does an increase in the rate of interest affect Simple Interest, assuming other factors remain constant?

Increases

Decreases

No effect

3 / 15

If the principal is $2500, the rate is 7%, and the Simple Interest is $350, what is the time period?

1 year

2 years

3 years

4 / 15

if the Simple Interest is $90, the rate is 9%, and the time is 2 years, what is the principal?

$800

$900

$1000

5 / 15

What happens to Simple Interest if the rate of interest decreases? t

Increases

Decreases

Remains constant

6 / 15

If the principal is $1200, the time is 3 years, and the Simple Interest is $180, what is the rate of interest?

10%

7 / 15

How does an increase in the principal affect Simple Interest, assuming other factors remain constant?

Increases

Decreases

No effect

8 / 15

If the principal is $1500, the rate is 8%, and the Simple Interest is $120, what is the time period?

1 year

1.5 years

2 years

9 / 15

When does the Simple Interest become maximum?

High principal, high rate, and high time

High principal, low rate, and low time

Low principal, high rate, and high time

10 / 15

If the principal is $2000, the rate is 6%, and the time is 2.5 years, what is the Simple Interest?

$240

$270

$300

11 / 15

What is the time period if the principal is $500, the rate is 10%, and the Simple Interest is $50?

1 year

2 years

5 years

12 / 15

If the Simple Interest is $120, the principal is $800, and the time is 3 years, what is the rate of interest?

15%

13 / 15

What happens to Simple Interest if the time period increases?

Increases

Decreases

Remains constant

14 / 15

If the principal is $1000, the rate is 5%, and the time is 2 years, what is the Simple Interest?

$50

$100

$200

15 / 15

What is the formula for calculating Simple Interest?

P×R×T

P×R÷T

P×T÷R

Your score is

The average score is 0%