How To Prepare For The Investment Banking Interview

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It seems that the investment banking industry has narrowly escaped Armaggedon and the survivors are waiving the bonus flags again. Intern classes are getting bigger and Business Week reported that Goldman Sachs has reclaimed the top spot as the most popular employer among elite MBA students again. If you are a career switcher and one among many MBA applicants dreaming of joining Goldman Sachs or another bulge bracket investment bank for the summer internship, this article is for you. Below we provide an overview of an investment banking interview and explain why its important to prepare in advance. This is especially true if you are a career switcher.

There are several types of questions which you are likely to be asked in your interview. They include career questions, educational questions, competency questions, fit questions, technical questions and industry questions.

While its difficult to predict which questions exactly you will be asked, there are four questions which will appear in any investment banking interview:
– The WMTYR (Walk me through your resume)
– The 3 Why’s (Why investment banking? Why our bank? Why (should we hire) you?

The answer to the first and the second questions may be quite similar to those you provided in your MBA admission interviews. Answer to the third question is a little bit more complicated and will require specific preparation.

The usual reason for interest in any specific investment bank include: (a) a strong platform, which means strong coverage teams, diverse offering of advisory and financial products, many interesting deals and opportunities to learn (b) a strong presence in specific markets or industries (c) and the most important, tons of wonderful and smart people with whom you talked with during your recruiting process and whom you really made a connection with. Networking is a critical component for your interview preparation but we will discuss this area in one of our
future postings.

Why (should we hire) you? To answer this question you need to reiterate your main strengths, interest in a specific bank and a great fit you feel for the bank you are interviewing with.
You should prepare for this question especially well as a banks approach to this question will usually be that a person who cannot sell himself cannot sell the banks products and banking is definitely a sales job.

Good to know Other challenging fit questions examining your understanding of the
investment banking can be:
– What does an investment banker actually do?
– What is the role of an associate in the investment banking?
The answer to the first question will usually go in the following way:
An investment bank serves as intermediaries between their clients
who need capital in the form of debt and equity
It provides strategic advisory services by structuring transactions
that meet clients needs and objectives
Overall, Investment bank works with companies on the transactions
that will enhance their value. This may include accessing capital
markets to find growth or expand operations, as well as investing in another
company through merger or acquisition. Banks are not only the
matchmaker between parties involved in a transaction, but also the primary
architects of the deal.

A typical answer to the question about the role of an associate will
go like this :
Analyzing industry and company data related to the transaction
Building excel models to valuate companies
Joining strategic meetings
Performing due diligence meetings with the clients
Creating, editing client presentations
Monitoring, paying close attention to documentation associated with
the deal (prospectus, internal memos)
Managing relationship with an analyst
The most important attributes that an associate should have are:
quantitative skills, the ability to learn quickly, discipline, a strong work ethic, the ability to
work in teams, detail orientation and dependability.

While answering competency and behavioral questions you should be structured and succinct. Banks like well organized and structured thinking and will quickly dismiss candidates who ramble or cannot distinguish important points from the less important ones. We recommend creating 3 bullet points for each of your answers and putting them on the paper in advance. Practice your answers with friends and be sure that your story is consistent and flows well before the interview.

The technical part

The technical part of the interview will test your familiarity with the accounting and financial terms. This will definitely require thorough preparation even if you study at one of the top MBA programs . First of all you will need to be familiar with the financial statements and their analysis. The profit and loss statement, the balance sheet and cash flow statements are all fair game in the interview.
Secondly, you will need to have a basic understanding of the company’s valuation methods. You should be very familiar with terms such as cost of capital, cash flow discounting, multiples, accretion and dilution, LBO, CAPM, WACC and Beta.

You also may be asked how M&A and IPOs work and even be given a case study on a business situation. It is strongly recommended that you start b-school having at least a basic understanding of accounting and finance.

Here are some books that can help you.
VAULT Guide to Finance Interviews by D. Bhatawedekhar, Dan Jacobson,
and the Vault Staff
Vault Career Guide to Investment Banking by Tom Lott, Derek Loosvelt
and the Staff of Vault
Heard on the Street by Timothy Falcon Crack.
Valuation: Measuring and Managing the Value of Companies by Tom
Copeland, et al, John Wiley & Sons Inc
Valuation: Measuring and Managing the Value of Companies
by McKinsey and Company
Financial Modeling, 3rd Edition (Hardcover), Simon Benninga

In the industry part of the interview the interviewers will test your understanding of the industry and your professional interests.
You will be asked about financial news and trends, current articles related to investment banking, discussions of the economic environment and economic trends, trends in M&A and definitely about specific deals.

To be prepared for this part of the interview its advisable to start reading financial and economic newspapers and journals. The Wall Street Journal, FT and Economist are good sources to gain relevant knowledge.

A couple of additional hints:
– Know recent interesting deals executed by banks with which you are interviewing.
– Talk about deals with passion the interviewers will test not only your level of knowledge but also your passion for IB
– And finally, always read the news in the morning before your interview

Some additional books to better understand investment banking before your interview include:
The Business of Investment Banking: A Comprehensive Overview , by K.
Thomas Liaw
Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley , by
Patricia Beard
The Last Tycoons: The Secret History of Lazard Frres & Co. , by
William Cohan
The Accidental Investment Banker: Inside the Decade that Transformed
Wall Street , By Jonathan Knee
More entertaining books include:
Barbarians at the Gate , By Bryan Burrough and John Helyar.
Bombardiers , By Po Bronson
Monkey Business: Swinging through the Wall Street Jungle, By John
Rolfe and Peter Troob.
Liars Poker: Rising Through the Wreckage on Wall Street , By Michael
Lewis, Norton Books.

Good luck with your interview!

Tithing Under The New Covenant – Part 2

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Tithing is mentioned only 4 times in the New Testament, three times in the gospels and once in the letter to the Hebrews. In the gospels, Jesus acknowledged that the Pharisees were very careful about tithing (Matt.23:23; Lk.11:42; 18:12) to the point of over-emphasizing it. They were so focused on tithing that they lost sight of the great goal of the Law, i.e. love and justice to our fellow-man. Also, they trusted in their tithing to give them merit before God.

Now remember that the Pharisees were under the Law, and by law had to tithe. All people in Israel were under the Law. When Jesus was crucified He ushered in the New Covenant, and the Old was finished. Tithing was established under the Law and has no place in the Church. It is no light thing to choose to adhere to the Law, even with a seemingly small issue as tithing. Every person who chooses to keep any part of the Law of Moses is obligated to keep the whole Law and is therefore exposed to its curse.

This point is made in the solitary reference to tithing in the New Testament epistles, i.e. in Hebrews 7. Heb.7:5 reads “And indeed those who are of the sons of Levi, who receive the priesthood, have a commandment to receive tithes from the people according to the law, that is, from their brethren [Israel]. Note three things from this verse: 1) There was a commandment concerning tithes in the Old Testament; 2) They were to be given to OT priests (not the Church); 3) They were required by the Jews, not Christians.

Hebrews 7:12 notes that when there is a change of the priesthood, there must also be a change of the law. In other words, that commandment that did exist under the Old Covenant has been changed, because the priesthood to which it related has now also been changed under the New Covenant.

Hebrews 7:18 says that this commandment has now been abolished. That priesthood, because of its inability to bring perfection, is now annulled. The Old Covenant is obsolete, and the laws which required tithes to be given to the Levites are obsolete. These Hebrews, i.e. Jewish converts, were mixing the law with grace, and were told in chapter 7 to stop tithing! The Gentiles had no need of this message. The Gentile church was never under the law.

Is God in our debt, or are we in His favour?

In Rom.4:4 and 11:35 Paul makes it clear that if our doing any works, including tithing, meant that God was obligated to us in any way then we would not be in His favour but He would actually be indebted to us. Whenever you hear that you must do something for God in order for Him to bless you, be careful! If you believe this, you will be taken out of Gods grace and brought back into the realm of Law. And the Law will actually become a curse to you, because even if you keep it all in one area, say tithing, but not in another, then you will experience its curse.

If we do not tithe, how will Gods work get done and how will the pastors needs be supplied?

First, let me say that there is a hermeneutical principle that has always been helpful when interpreting the Bible and it is this – Major on majors. Jesus told 38 parables, 16 concern how we should handle money. He spoke more about money than He did about heaven and hell combined. One out of 10 verses in the gospels deal with possessions or money. In the Bible there are approximately 2500 references to money and possessions and only 500 references to prayer and faith. It is a major issue in the Bible. Many of these verses teach us that the way we handle finances reveals much about where we are at spiritually. Where your treasure is there will your heart be also.

The gospels contain more warning on the misuse of money, than any other subject. The first recorded sin amongst Gods people related to giving. Ananias & Sapphira dropped dead giving. So the way we handle our finances is an important issue in the New Testament.

Moses (the Law) said Tithe, but Jesus says, Give. The New Testament teaching was on giving, never on tithing. Giving is a result of the energy of Gods grace in our lives. Giving expresses a quality of living that reflects the nature of God. God so loved that He gave The Father loved to give all things to the Son. Jesus gave His life for the world. In doing so has gained an everlasting kingdom. But He will, one day, give it back to the Father. God desires to have a family that reflects His nature. It is the way of the Cross. It is more blessed to give than to receive. The Cross opens the heart, expands it, causing it to reach out to others.

When we are under law we have to be told to tithe. We reveal our immaturity under legalism by asking childish questions, such as, Should I tithe on my gross income, or my net income? Grace treats us as mature sons by not legislating. Grace takes us into the purposes of Gods heart, family and kingdom and allows us to be involved with Him. But our involvement is not solicited by fear-manipulation or guilt-manipulation, but as a result of the operation of the energy of grace in our hearts. So that which we give we do so freely. God loves a cheerful giver.

It is clear from passages such as 1 Cor.9:7-14 that we have responsibilities to ensure that Gods servants who preach the Word are free to do so unencumbered by secular work. But still there is no legislating this. We approach this matter as responsible sons, not as intimidated servants.

Gay Male Escorts A Lucrative Career

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In this day and age, being gay is certainly no longer that much of an issue. Sure, there are still many people who are uncomfortable with the idea but on the whole, being gay no longer causes ripples in polite societys pond the way it used to back in the day.

As with every other entrepreneurial endeavor, the companionship business has also evolved and utilizing the internet has offered both the client and proprietor more opportunities, choices, and confidentiality.

While the term escort evokes images of beautiful paid women and rich influential men, there is a relatively much smaller portion of the prostitution industry made up of men whose attentions can be had for a fee.

Gay male escorts can charge quite high prices for their time and for any other extra service and the internet offers many websites catering to this industry that one can even choose by state! They have actual directories for this. Take for example: Gay male escorts USA New York directory and gay male escorts San Francisco USA listing. Added is the convenience with which clients can pick and choose over the internet. Its as simple as typing these phrases in Google: Gay escorts male USA webcams, gay male escorts USA videos free, USA gay male escorts USA pictures listings free, and so on and so forth.

Most gay male escorts generally look and act straight which is certainly convenient for those clients who prize discreetness above all. It is worth noting though that there are also the rare types of male escorts who are gay for pay. This means that they identify themselves as heterosexual but would do same sex activities for a certain sum.

Rent boys, as they are also called, usually go into the industry for financial reasons they were either desperate for money or they just wanted to augment their current income and afford the finer things in life. Earning $300 an hour as a gay male escort may not be a guys dream job but if you desperately need to pay your rent or you want that new cellphone Well, it certainly is a quicker way to get much needed cash.

Though the industry does pay good money, like any other industry, there are also downsides. Any rent boy would tell you there are clients who are personifications of their nightmares from cheapskates, stalkers, and sexual sadists to name a few. Of course, the element of danger is ever present in this job. The risk of sexually transmitted diseases is a fundamental concern. Personal safety is another. In this line of work, one is exposed to the risk of hate crimes which is also why it is important to be circumspect. Or what if you end up being with an actual honest to goodness psycho? Its all in a days work in the life of a gay male escort (well, most escorts for that matter).

In the worlds oldest profession, the relatively small population of rent boys makes it an extremely lucrative business sector. As Aaron Lawrence, a gay pornographic actor and director so succinctly puts it, The gay body is not only pleasurable, but profitable as well.

Same day loans for people on benefits-An instant financial assistance for disabled

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Inefficient monthly income and disability goes side by side. If you are staying on benefits provided by DSS (department of social security) and unable to maintain your financial status, here are same day loans for people on benefits for you. This is the affordable and feasible source of finance that let you live without any financial distress. If disability is ruining your life and shortage of finances is taking away the peace, here is suitable and beneficial financial aid available right away. It can be the appropriate fiscal aid for disabled who often feel incompetent to earn enough for them and need immediate financial aid.

Same day loans for people on benefits as the name suggests are short term financial aid that helps you to meet your small financial woes with no stress and delays. A simple method to get applied with this aid is to choose the online application method. It is gaining the popularity among the borrowers due to its speed and simplicity. Application with the use of internet hardly takes few minute and the funds will transfer in your bank account within quick span of time. Also, you do not have to undergo preparing lots of documents to fax. The affordable deal can be accessed with the careful online research. Many lenders are available at online web that offer the deal at competitive rates. Comparing the quotes and making negotiation will let you grab the best deal of all.

Moreover, loans for people on benefits that are extremely beneficial for disabled who need immediate funds to fulfill their financial woes in least possible time. One need not have to waste the time and effort in arranging the collateral. As the name says, it is small duration loan that let you access the short term money for meeting your immediate and temporary needs right away. The repayment period is also flexible and convenient in nature. Lender does not put any interference in the spending of loan amount. Any desired needs such as meeting grocery bills, utility bills, small education fee, purchase a dress, expenses on festive occasions and so on can simply be met out.

Plus, presence of bad factors does not affect the approval of these loans. So, lender accepts the application of all borrowers with any type of credit scores. One can simply enjoy this financial aid with comfort and swiftness of their home or office.

How To File For A Tax Extension In Five Simple Steps

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April 15 is the official deadline to file tax returns and pay taxes in the US every year; and though aware of this deadline, many people fail to do so. While some people put off the filing work for no reason, few others dont find the time to gather all their tax documents. No matter what the reason, failing to file the tax return forms within April 15 results in hefty penalties, which keep on accumulating one above the other until the dues are paid off; unless a provision for tax extension is filed. For the benefit of taxpayers of US, the IRS allows a provision for extending the deadline to file tax returns up to 6 months, called IRS tax extension and all it takes is filing the tax extension form 4868 within April 15 and getting it approved. Not only it extends the deadline to file a tax return, but also avoids all sorts of penalties associated with late filing. So without further ado, lets discuss the simple, five step methodology to understand how to file for a tax extension.

1. Understanding Tax Extension

The first and foremost thing to do before knowing how to file for a tax extension is to understand what are its features. An extension essentially extends the time to file a tax return but doesnt extend the deadline for paying your taxes. April 15 shall remain to be the last date to pay all your tax dues and more importantly, April 15 is also the last date to file for a tax extension.

2. Reviewing the Need for Extension

Most people make the unnecessary move of learning how to file for a tax extension without even reviewing the need for an extension in their case. If you have all the documents ready, your accountant available at your service and no financial complications to pay the taxes, there is absolutely no need to buy extra time. It just becomes an excuse to procrastinate and delay filing further and further.

3. Form 4868 and 7004

In order to file for an extension, you need to fill the form 4868 for individual purpose and form 7004 for business. These forms are available both in paper form and online, the latter being the most preferred one. You can download and print the form for free from the IRS website or even take the help of an e-file provider website who also offer an online tax calculator.

4. Filling the Form

Though you know how to file for a tax extension, your form could get rejected by simple entry errors or incorrect information. So fill out the form carefully by providing valid information; and your name, contact information and social security number are the only documents you would need to fill out the form. Once done, you can track the status of your submitted form and get an email confirmation from the IRS on its reception.

5. Filing Tax Returns

Getting an extension of 6 months shouldnt be an excuse to delay filing tax returns. Once you get an approval, gather all the documents you would need, consult your accountant if there is one and ensure you take every aspect into consideration such as tax deposits, tax refunds, due amount etc. to file a tax return that helps your financial interests.

These 5 points are explained in brief and give an outline the process of filing. To know more about how to file for a tax extension, do your research or take the help of an e-file provider website which will not only help you file the extension form but also offers features like online tax calculators and advisory services.