Accounting
A company generates $800,000 in revenue and has a 25% gross margin. What is its COGS?
$600,000
What economic indicator measures the total value of final goods and services produced within a country?
GDP
Name all four Scholars of Finance core values.
Integrity, Compassion, Humility, Excellence
A derivative is a financial contract whose value depends on the value of something else
53*61
3233
A company purchases $50,000 of inventory with cash. What is the immediate effect on total assets?
No change — cash decreases $50K while inventory increases $50K
An inverted yield curve occurs when short-term Treasury yields are ______ long-term Treasury yields.
Higher than
What is SoF's last President's Full Name?
Gavin Ng
What is beta?
“Beta” in the Capital Asset Pricing Model (CAPM) measures expected return and expected risk.
You have three boxes labeled Apples, Oranges, and Mixed. Every label is wrong. You can take one fruit from one box. How can you correctly label all three?
Pick from the box labeled “Mixed.” Since every label is wrong, that box cannot be mixed. The fruit you draw tells you what that box actually contains, and you can determine the other two by elimination.
A company records $20,000 of depreciation expense. Ignoring taxes, what happens to net income and cash flow from operations?
If inflation remains high while economic growth stagnates, what is this environment called?
Stagflation
Which year was SoF founded?
2018
What are the 3 major valuation methodologies?
Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis
What is the next number in the sequence 27, 64, 125?
216
A company sells equipment for $70K. Its original cost was $100K, and accumulated depreciation is $40K. What gain or loss is recorded?
A $10,000 gain is recorded.
The Federal Reserve raises interest rates while everything else stays constant. What would you generally expect to happen to the present value of future corporate cash flows?
Decrease, because the discount rate increases
Approximately how many professionals are within our network?
~1,200
If I were stranded on a desert island, only had 1 statement and I wanted to review the overall health of a company – which statement would I use and why?
The Cash Flow Statement: it gives a true picture of how much cash the company is actually generating, independent of all the non-cash expenses you might have.
A car drives 60 miles at an average speed of 30 miles per hour. How fast should the driver drive to travel the same 60 miles in the same time period, but at an average of 60 miles per hour?
This is not possible. To travel 60 miles at an average speed of 30 miles per hour, 2 hours are required; to travel at an average of 60 miles per hour in those same 2 hours, you’d need to go 120 miles rather than 60 miles. The most common mistake is to respond with 90 miles per hour or 120 miles per hour – if you get a question like this in an interview, be sure to ask clarifying questions that could point you in the right direction. In this case, for example, we might have reframed the question and asked if it was really, “How do you travel 60 miles in 2 hours at an average speed of 60 miles per hour?” If he said yes, we’d instantly know it was not possible.
A company has $400K current assets, $200K current liabilities, and uses $100K cash to pay $100K of accounts payable. What happens to its current ratio?
The current ratio increases from 2.0 to 3.0.
A company's earnings remain unchanged, but its stock price rises 25%. What happens to its P/E ratio?
It rises 25%, assuming shares outstanding and earnings are unchanged
Baird, BlackRock, Blackstone, Charles Swab, PNC, Piper Sandler, Goldman Sachs, Morgan Stanley, North Equity, US Bank
What do you do in restructuring?
Restructuring bankers advised distressed companies – businesses going bankrupt, in the midst of bankruptcy, or getting out of bankruptcy – and help them change their capital structure to get out of bankruptcy, avoid it in the first place, or assist with a sale of the company depending on the scenario.
What is the angle formed by the hands of the clock when it is 1:45?
142.5 degrees. If we just think of the clock hour hand at 1 and the minute hand at the 45 position (near 9 o’clock), that is 120 degrees since they are 4 “numbers” apart, and each number on the clock represents 30 degrees (360/12).