Finance accounting summer intern Interview Questions

525

Finance Accounting Summer Intern interview questions shared by candidates

Top Interview Questions

Sort: Relevance|Popular|Date
Morgan Stanley
Quantitative Finance Summer Associate was asked...5 August 2010

At a party everyone shakes hands, 66 hand shakes occur, how many people are at the party?

9 Answers

12

You can suppose there are n people in the room and think of them in a row. The first one has to shake hands with (n-1) people (because he doesn't have to shake hands with himself). The second one has already shaken hands with the first one, so he has (n-2) shakes remaining... and so on. So you have to sum: (n-1)+(n-2)+(n-3)+...+1= (n/2)*(n-1) Then you have to solve (n/2)*(n-1)=66 and you get n=12. Less

n(n-1)/2=66 so n=12

Show more responses
Citi

You have a Balance Sheet, Income Statement, and a Cash Flow statement. If you could choose two out of the three statements, which two would you choose and why?

6 Answers

You can make the SCF from BS and IS

This is a straight accounting question. You can make Cash Flow from Balance Sheet and Income Statement, so BS and IS is the answer! Less

@hussein: There is only one correct answer, and it is the Balance Sheet and Income Statement. Less

Show more responses
Morgan Stanley

There are two stocks with the same expected value, with variance 0.3 and 0.2 and correlation 0.5. What proportion of each stock do you invest in to yield a minimum risk portfolio?

5 Answers

17/44 of the stock with variance of .3 and 27/44 from the stock with variance of .2 Less

No, if you can short, the variance could be reduced even further since the stocks are correlated. Less

Above answers used variance in portfolio variance equation, rather than std. Answer is .386 for security with var .3, and .613 for security with var .2 Less

Show more responses
Morgan Stanley

A use 5 hours finish a job. B use 8 hours finish it. How long A and B take it together?

4 Answers

I mean it is not correct (but probably I do not have got true): 1 hour A can make 20% (1/5) B can make 12.5% (1/8) A+B can make 32.5% (1/5 + 1/8 = 13/40) The work will be finished at 100% (1) 1 hour - 32.5% (13/40) x hour - 100% (1) x = 1*1/(13/40) = 40/13 = 3.077 (hours) tha half of the equation was good, but: 8 = X + 1.6*X = 2.6X; -> x=8/2.6) Please post a comment if I do not have true!!! Less

40/13

http://brainteaserbible.com/interview-brainteaser-andy-and-ben-working-together

Show more responses
Morgan Stanley

If W is standard Brownian Motion, for what values of n is W^n still a martingale?

3 Answers

By Ito W^n is a martingale for n=0,1

Agree, for any n>1 you get a drift term

Xt is a martingale you get f(Xt) is a martingale if f is linear otherwise convexity or concavity will increase or decrease the expectation, think of Jensen inequality. Less

Morgan Stanley

Evaluate the integral from 0 to pi/6 of sec(x) dx.

3 Answers

ln(root 3)

ln(3)/2

Reaching back to high school, I'd say -.5

Deloitte

How would you value X company? Calculate FCF, working capital, enterprise value, etc. Does anything strike you as odd about these financial statements? Which? Why?

2 Answers

DCF, transaction comps, trading comps. FCF= NI +D/A -change in net working capital -capex. Working capital = current assets- current liabilities. Enterprise value = market cap + debt - cash + minority interest/pref shares. Less

For FCF ... assuming FCF to the firm, i.e. FCFF, I think the "interest paid" needs to be added back. Working capital, depending upon data given, narrowed down to (Inventories + A/c Receivables - A/c Payables). Less

PepsiCo

What words describes you

2 Answers

How do others describe you

Resilient

Barclays

If given $100 to invest today and you earn 10% the first year, and then reinvest all the money and lose 10% the next year, do you end up with a gain or a loss?

2 Answers

Loss

you have a loss by 1 Rupee

T.D. Security

What do bankers use a a measure to evaluate companies

2 Answers

3 forms of repayment. 1) cash flow from operations, 2) guarantor support, 3) collateral support for repayment upon liquidation. Less

Ebitda

Viewing 1 - 10 of 525 interview questions

See Interview Questions for Similar Jobs