The "Am I good enough for Investment Banking/Consultancy?" Thread

Scroll to see replies

For example,
I have no idea how to answer these questions off wikijob

How would you calculate a firm's WACC? What would you use it for?
How do you calculate the firm value for the following firm?
What would greater impact a firms valuation, a 10% reduction in revenues or 1% reduction in discount rate?
What major factors affect the yield on a corporate bond?
Walk me through the major line items of a Cash Flow Statement

Firstly, very few degrees if any (only the banking degree at Cass springs to mind) will teach you these in any sort of depth.

You should know the first one for an IBD interview, to be on the safe side. WACC is basically used during a DCF (which you should also know - just an overview, not how to calculate it) http://en.wikipedia.org/wiki/Discounted_cash_flow

Calculate the value of a firm? DCF would do that, know the difference between an income, asset and market based approach. Generally whatever you can take off wikipedia is a good first step approach (how i first learnt anyway) http://en.wikipedia.org/wiki/Business_valuation

Depends on a lot of factors tbh; current discount rate is important, profitability, financial leverage etc... really we need more information.

Well generally, bad news means the value of the bond falls, so the yield rises, and good news means the value of the bond rises so the yield falls. Imagine big corporate's and some simple factors that will affect them - downgrades, drop in profits etc.

Just google cash flow statement.

These kinds of things don't really get taught in many degrees though; so it is a case of research etc.

Reply 2561

CapitalV

^any basic corporate finance course @ undergrad will/should teach you these...

Reply 2562

TheCityBoy

Hi people,

Wondered what your opinions on my investment banking (particularly the Sales side of Sales and trading) prospects were.
My academic background: A levels AACC (A Economics, A General Studies, C, History, C ICT) however my History is being remarked this summer and pretty confident it will be marked up to at least a B.

I currently study at Plymouth University in which I obtained a 1st class grade in my first year on a Bsc Economics course however University of Leicester have offered me a place to enter on the second year to their economics course providing my history grades are marked up.

My work background: currently interning at one of the UK’s largest Asset Management firms in The City of London (wont say which) in their Investment Compliance team, I will also be interning at a large regional Chartered Accountants as well as the UK’s largest Building Society in The City of London within their Treasury Department.

I am under no illusion that I am competing against Oxford/Cambridge/LSE/Warwick/etc students, I know that. But do you believe my work experience will perhaps shine through on my CV/application forms and may get a look in at some firms (even if it is just one or two)

I intend to apply for Tier 1, Tier 2 banks, AM firms, PE firms, HF’s, you name it!

Thanks

Reply 2563

Hackett

Original post by TheCityBoy

Your work experience wont shine through, it's pretty budget. But who am I to say

Reply 2564

adam0311

Original post by Hackett

Your work experience wont shine through, it's pretty budget. But who am I to say

LOL please go back to waiting for your A level results. His work experience is better than 95% of first years.

Reply 2565

Hackett

Original post by adam0311

LOL please go back to waiting for your A level results. His work experience is better than 95% of first years.

Like I said, It's pretty average

Reply 2566

adam0311

Original post by Hackett

Like I said, It's pretty average

For TSR? Yes. I agree, average. For real life? Quite a bit above average.

Reply 2567

TheCityBoy

I dont mean to sound condescending at all Hackett, but can I ask about your background that makes you come to that conclusion? Do you work in Investment Banking or financial services?

and adam0311, I appreciate the reassurance, means a lot. Would hate to think all my hard work means nothing haha!

Reply 2568

gudjbr

I'm worried about my lack of work experience. No banking experience, no internships. I have worked at the same company for years, however doing a lot of finance and accounting related stuff - ended up at a managerial level. Mostly worked as a salesman however.

Academics: 2:1 from a fairly high ranked Swedish uni. Going into MSc in Financial Management at Durham, aiming for a 1st.

What chances do I have when I graduate? Should I aim for an internship after graduating before trying to apply for full-time? Will my chances even for internships decrease due to my age and degrees in conjunction with my lack of work experience? I obviously regret staying at the same company, not looking for more work experience, but how much does the fact that I didn't screw me over?

Anyone?

Hey guys,

Hoping you can help me, I'm a colossal noob trying to gather information. A Levels ABCC. Just finished a degree in genetics from QM with 2.1.

So obviously, I'm at a relative disadvantage as I have NO related expereince. I believe internship are probably the best thing for me to do and shouldn't even waste my attempting to reach for your top tier banks.

Basically, anyone want to advise me on next appraoch and how long it'll take me to reach working the top tier bank if i progress smoothly.

Reply 2571

Intriguing Alias

Original post by 419

Don't have much advice for you other than most big banks will want ABB-AAB or better in 3 A-levels so I'd advise you to find out which these are and cross them off your list as to not waste time :smile:

Reply 2572

kylerobo

Hello, just looking for some advice on my prospects in IB! I'm most interested in IB Risk but considering Finance as well

A-Levels A* (philosophy & ethics), A (history) , A (business studies)

I'm studying Business Management at Birmingham University, I got a 1.1 in my first year.

I've done work experience with an asset consultancy firm and in finance at my Local Authority.

Reply 2573

Brianop

Original post by kylerobo

Definitely try middle office, it wouldn't be weird in any way if they accepted you in middle office.

Reply 2574

Brianop

So, how about this weird one guys...

My friend graduated in medicine at sofia in bulggaria
..He wants to go into IB, good enough?

Reply 2575

plod2

hi so I go to imperial and I'm studying mech eng I got 75% for my first year and got 3 A*s in maths, fmaths and physics with an A in chem at a level.

I have no connections, no work experience, no extra curricular, not much knowledge of finance so would I have a chance?

Reply 2576

Brianop

Original post by Brianop

So, how about this weird one guys...

My friend graduated in medicine at sofia in bulggaria
..He wants to go into IB, good enough?

An answer to this one please?

Reply 2577

TheJ0ker

Original post by Brianop

So, how about this weird one guys...

My friend graduated in medicine at sofia in bulggaria
..He wants to go into IB, good enough?

That really no where near enough info to be able give a good answer is it?

Reply 2578

Brianop

Original post by TheJ0ker

That really no where near enough info to be able give a good answer is it?

Just on the basis of degrees..

Reply 2579

Bankahoy

Original post by Brianop

Just on the basis of degrees..

You can get into IB with any type of degree if its from a good uni and your CV is good enough..

Its not like recruiters go "Oh hey, he's doing Economics! He's in!"