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BIWS 400 Questions - All Technicals Questions With Complete Solutions

BIWS LBO UPDATED Actual Questions and CORRECT Answers What is a leveraged buyout, and why does it work? - CORRECT ANSWER- - PE firm acquires a company using a combination of debt and equity - it operates it for several years - then sells the company at the end of the period to realize a return on its investment - during the ownership period, the PE firm uses the company's cash flows to pay for the debt interest expense and to repay the debt principal

BIWS 400 Questions - Valuation Questions & Answers – Basic Questions With Complete Solutions

BIWS 400 Questions - Valuation Questions & Answers – Basic (latest Update 2024)

You've never worked in finance before. How much do you know about what bankers actually do? - Answer-I've done a lot of research on my own. Based on that, I know that bankers advise companies on transactions - buying and selling other companies, and raising capital. They are "agents" that connect a company with the appropriate buyer, seller, or investor. The day-to-day work involves creating presentations, financial analysis and marketing materials such as Executive Summaries. Let's ...

You've never worked in finance before. How much do you know about what bankers actually do? - Answer-I've done a lot of research on my own. Based on that, I know that bankers advise companies on transactions - buying and selling other companies, and raising capital. They are "agents" that connect a company with the appropriate buyer, seller, or investor. The day-to-day work involves creating presentations, financial analysis and marketing materials such as Executive Summaries. Let's ...

Why would one company want to buy another company? - ANSWER A company might want to buy another company if it is looking to expand its market share, product offerings, customer base and distribution channels. Through expanding in these ways, the company expects to increase its EPS and that the investment will generate returns greater than its WACC to fund the transaction. The buyer might also be looking to consolidate and cut costs through acquiring another company. Sometimes, an acquisition wil...

What are the 3 major valuation methodologies? - Answer-Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Public Comps and Precedent Transactions are examples of relative valuations and DCF is an example of Intrinsic Valuation Rank the 3 valuation methodologies from highest to lowest expected value. - Answer-There is no ranking that will always hold. In general, precedent transactions will be higher than comparable companies due to the control premium built int...

BIWS LBO Exam Questions With 100% Correct Answers What is a leveraged buyout, and why does it work? - answer- PE firm acquires a company using a combination of debt and equity - it operates it for several years - then sells the company at the end of the period to realize a return on its investment - during the ownership period, the PE firm uses the company's cash flows to pay for the debt interest expense and to repay the debt principal IT WORKS BECAUSE - leverage amplifies returns ...

M&A Deals and Merger Models – BIWS Questions & Correct Answers/ Graded A+