Accounting
DEEP only: Walk me through the three financial statements and explain how they connect.
The income statement shows profitability, the balance sheet shows assets, liabilities and equity, and the cash flow statement tracks cash movements. Net income flows into the top line of the cash flow statement and retained earnings on the balance sheet; ending cash flows back to the balance sheet.
Why might precedent transaction multiples be higher than public trading multiples?
Acquisitions may include control premiums and expected synergies, resulting in higher transaction multiples.
Who is the current Federal Reserve Chair, and did the Fed raise or lower rates at its September 2026 meeting?
Kevin Warsh; raised rates by 25 bps.
How many calls a week do you need to get a job?
10.
What is the MAIF red RGB code
136, 28, 28
What is working capital, and how does an increase in accounts receivable affect cash flow?
Working capital equals current assets minus current liabilities. An increase in accounts receivable is a use of cash because revenue has been recognized but payment has not been collected.
What is the difference between enterprise value and equity value? How do you calculate each?
Equity Value = Share Price * Total Shares Outstanding; EV=Equity Value+Debt−Cash
Why do high-yield credit spreads generally widen during economic downturns?
Investors demand more compensation for default risk, liquidity risk, and uncertainty
Define the difference between buy-side and sell-side.
The buyside invests capital to generate returns, while the sellside provides services such as research, trading, and capital raising to investors and companies.
Being a powerpoint monkey.
Why might a company report an increase in net income while its cash balance decreases?
Net income includes noncash earnings and excludes cash outflows such as CapEx, debt repayments, and certain working capital investments.
What do we generally use for the discount rate and what is the equation for it?
WACC is used as the discount rate and calculated as: WACC = (Equity Weight × Cost of Equity) + (Debt Weight × Cost of Debt × (1 − Tax Rate))
The 10-year Treasury yield recently reached its highest level in over two decades because of these factors
What are inflation expectations, government borrowing needs, and rising term premiums?
How many people is too many to reach out to on the same team in the same week?
3
Why is wealth better than IB?
It's not.
What is goodwill, and what happens when a company records a $50 goodwill impairment?
Goodwill generally arises when an acquisition's purchase price exceeds the fair value of identifiable net assets acquired. A $50 impairment reduces pretax income and goodwill by $50. Assuming no tax benefit, net income and retained earnings decrease $50, with no cash flow impact.
Walk me through a discounted cash flow (DCF) analysis from beginning to end.
Project unlevered free cash flow, calculate WACC, estimate terminal value and discount future cash flows to present value. Sum them to calculate enterprise value, then bridge to equity value and divide by diluted shares outstanding.
Which major technology company saw its bonds fall toward distressed levels amid concerns about debt-financed AI infrastructure?
CoreWeave
How much earlier does recruiting become each year?
5 weeks on average.
Who had the fastest call up from JA to SA? And how many pitches?
Alex (2), Max (2), Adam (2)
Depreciation increases by $10. Assuming a 25% tax rate, how will the three financial statements be affected?
Operating income decreases by $10; Net income decreases $7.50. Operating cash flow increases $2.50 after adding back depreciation. Cash increases $2.50, PP&E decreases $10 and retained earnings decrease $7.50.
Why might a distressed company's unsecured bonds trade above their estimated recovery value?
Investors may price in a refinancing, out-of-court exchange, parent support, restructuring upside, or a probability-weighted recovery greater than the downside liquidation estimate.
Why might the Federal Reserve cut interest rates while the 10-year Treasury yield rises, and what does this signal about market expectations?
Investors may expect higher long-term inflation, stronger economic growth, or increased Treasury supply, pushing long-term yields higher despite monetary easing.
Will a job fall in your lap?
If you are Ryan Murphy, yes. If not, no.
Name every current member of MAIF who went through DEEP.
Alex, Brandon, Hallal, Brooke, Carina, Jackson, Adam, Max, Yawoga, Welnicki