San Francisco RBC Capital Markets - Summer Analyst (Investment Banking) | GoFurther Technical Interv
San Francisco RBC Capital Markets - Summer Analyst
Tell me about yourself.
Why IB?
Client facing work? Analysts do BO stuff. Tell me what you think about the experience now.
Can you work hard?
What can you offer RBC?
Any RBC deals?
Can you give me specific multiples about these deals?
Do you follow the markets?
Briefly, not too specific but know high level trends
Additional questions for various RBC rounds
Industry news?
Cloud storage, Dropbox, Textura, depends on technological infrastructure, Cloud OS – chromebooks and Microsoft – will take a while before this new business model is feasible
Is it feasible?
Probably not in the near future
Link financial statements?
Easy
Company issues debt to buy back its own stock. Tell me what changes in the 3 financial statements.
Balance sheet LT debt increases and stock decreases
In CFS – CFF – add cash from debt and then subtract cash that was used to buy equity
What are the main valuation methods?
Relative - public comps, precedent transactions, and dcf (intrinsic)
Also other methods such as liquidation and sum of the parts
Higher Comps or Precedent transactions?
Really depends on your assumptions
Stock market very emotional so if company stock is trading at all-time high maybe comps will be inflated
Precedent usually higher because of control premium, but really depends
