JP Morgan Investment Banking Global Locations (San Francisco, New York, LA, Hong Kong, Singapore) |
San Francisco JP Morgan
[if !supportLists]1. [endif]Would a healthcare company have a beta greater or less than 1?
[if !supportLists]· [endif]Less than 1—blockbuster drugs are study revenue and people get sick no matter how the economy is doing
[if !supportLists]2. [endif]Would Coke or Pepsi have a higher multiple?
[if !supportLists]· [endif]The answer is coke because they have better brand, better company organization and etc. I said Pepsi because coke is everywhere and Pepsi has more international growth opportunities
[if !supportLists]3. [endif]What are strengths and WEAKNESSES of JPM?
[if !supportLists]· [endif]JPM’s international business is not as strong as others, such as presence in Asia. Strengths: entrepreneurial culture, diversity, hiring the best, etc.
[if !supportLists]4. [endif]What does an investment banker do, what qualities do successful bankers have, and how do you fit those?
[if !supportLists]· [endif]See M&I guide and know your own strengths
[if !supportLists]5. [endif]What do you think the market will do in the next year, and what threats are facing the US economy?
[if !supportLists]6. [endif]What is your favorite method of valuing a company?
[if !supportLists]· [endif]This one is essentially asking you about the strengths of different valuation method. I said DCF—not market based and looks at companies future performance, also it looks at the risk adjusted internally generated cash flows of a company.
[if !supportLists]7. [endif]Why would you look at a revenue multiple over a P/E multiple?
[if !supportLists]· [endif]Due to Negative profits or because revenue and EBITDA/EBIT numbers are independent of capital structure- P/E is not
[if !supportLists]8. [endif]How would you value Merck (healthcare company)?
[if !supportLists]· [endif]Merck is an established company, so you can use DCF. Then look at comps. You could also say that you could do a sum of the parts valuation because they are more of a conglomerate with ventures in not only pharma area but biotech as well. You could also say to do an LBO analysis to see what a P/E firm would pay and thus creating a floor valuation.
[if !supportLists]9. [endif]How would you value one Starbucks coffee shop?
[if !supportLists]· [endif]See different methods of valuation
[if !supportLists]10. [endif]Walk me through the changes you would make on the three financial statements in an accretion/dilution analysis.
[if !supportLists]11. [endif]Why are you interested in the technology industry? Tell me about a trend and a recent deal you have followed within the industry.
New York JP Morgan
[if !supportLists]1. [endif]If you had $10K to invest in a company, what would you invest in and why?
[if !supportLists]· [endif]Pitch a stock.
[if !supportLists]2. [endif]Say the US computer industry is experiencing declining revenue, but a particular company is experiencing high levels of sales and revenue. What are some reasons why this may happen?
[if !supportLists]· [endif]Possible reasons: International sales; or consider apple- innovative products and powerful marketing
[if !supportLists]3. [endif]If you have 10 minutes off work, what three websites would you go to?
[if !supportLists]· [endif]Test if you are an interesting person, so don’t list three finance websites. ESPN is always a safe one
Hong Kong JP Morgan
[if !supportLists]1. [endif]Why would EV/EBITDA yield higher/lower value than P/E?
Singapore JP Morgan
[if !supportLists]1. [endif]If I promise to give you $2000 per year till you die, what is the maximum amount of money you are willing to give me now? Keep in mind that you need to be reasonable, or I will get it from someone else.
Los Angeles JP Morgan – (Superday)
[if !supportLists]1. [endif]Walk me through the M&A model, what line items would get adjusted?
[if !supportLists]2. [endif]How many gas stations are there in the U.S.?
[if !supportLists]3. [endif]A bear walks north for 1 mile and then walks west for 1 mile then walks south for another 1 mile and ended up where he started off from. What color is the bear?
[if !supportLists]4. [endif]Two trains on a parallel track. The distance between the front of train A and B are 100 miles. Train A is 3 miles long and Train B is 1 mile long. Train A speed is 24 Miles/Hour and Train B speed is 28 Miles/Hour. How long will it take for the end side of the trains to meet?
[if !supportLists]5. [endif]Show me the treasury stock method
[if !supportLists]6. [endif]What are views on the US economy? Global?
[if !supportLists]7. [endif]What stock would you invest in and why?
[if !supportLists]8. [endif]What makes a good acquisition target?
[if !supportLists]9. [endif]What is the beta for a Mexican stock vs. US stock
[if !supportLists]10. [endif]Why are you here?
[if !supportLists]11. [endif]What’s the difference between EV/EBITDA vs. P/E, which could be more volatile?
[if !supportLists]12. [endif]What is the adjustment you need to made when you value Mexican company?
[if !supportLists]13. [endif]What is the difference in value for Mexican company and American company, assuming 1 Peso = 1 dollar, and they operate in the same line of business? Assuming 4 Peso = 1 Dollar?
[if !supportLists]14. [endif]Company A P/E = 10x, Company B P/E = 20x, If A buys B, the deal is Accretive or Dilutive? Why?
