Investment Banking Interview Question of the Week #12

Question #12

When should you value a company using a revenue multiple vs. EBITDA?

ebitda and revenue

 

As always, please feel free to email in your answers to be posted (jufiberclub@gmail.com), reply in the comment box below, or email and Tweet this question to someone who may want to take a stab at it!

Posted by Drew Hutcheson
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Investment Banking Interview Question of the Week #11

m&a2

Question of the Week #11

Company A is considering acquiring Company B. Company A’s P/E is 50x earnings, whereas company B’s P/E ratio is 20x earnings. After Company A acquires Company B, will Company A’s earnings per share rise, fall, or stay the same?

As always, please feel free to email in your answers to be posted (jufiberclub@gmail.com), reply in the comment box below, or email and Tweet this question to someone who may want to take a stab at it!

Posted by Drew Hutcheson

Investment Banking Interview Question of the Week #08

debt-equity

Question #08

If there are two identical companies, one financed 100% with equity and the other with 50% equity and 50% debt, which would be worth more?

As always, please feel free to email in your answers to be posted (jufiberclub@gmail.com), reply in the comment box below, or email andTweet this question to someone who may want to take a stab at it!

Posted by Drew Hutcheson