finance guide

Duke MBA Finance Club

Duke MBA Finance Club Resource Guide


2010 – 2011



Table of Contents

1. Letter from the Presidents

2. Resources

a. Academic

b. Finance Club

c. On your Own

d. What you can do now

3. Cover Letter and Resume

4. Best Practices

5. Function-Specific Overview and Guides

a. Investment Banking

b. Sales and Trading

c. Private Wealth Management

d. Corporate Finance



Dear Finance Club Member,

On behalf of the Duke MBA Finance Club, we would like to take this opportunity to welcome

you to Fuqua. We are excited to serve as Co-Presidents of the Finance Club this year. There

were a lot of great initiatives taken on by the Club over the last year and we hope to be able to

build on these and make the Club even more valuable to both First Years (FYs) and Second

Years (SYs) looking to start careers in finance. We have a terrific team of SYs on the Board of

Directors who are eager to help you prepare for the recruiting season and to plan and organize

great events from the Finance Symposium and Week on Wall Street trip to the bi-weekly

Markets Discussions.

This is the first year the Finance Club has put together a comprehensive guide detailing the

finance recruiting process and ways FYs can get a head start with their preparation. There is a

lot of very helpful information in this guide and much of it has been tailored specifically for the

Fuqua recruiting experience. We hope that you will take some time this summer to review this

guide and plan accordingly. Believe it or not, as soon as Term 1 starts, you will be bombarded

with opportunities and will have much less time on your hands than you expect.

As mentioned before, we have a great group of SYs on the Board of Directors and you should

feel free to reach out to any and all of us should you have any questions along the way. We will

have a number of events to help introduce everyone but remember to be proactive as well.

Congratulations on joining Team Fuqua and we look forward to meeting you in Term 1.

Best Regards & Good Luck,

Lia and Chris

Co-Presidents



RESOURCES

Academic

Course Exemptions

You will receive information about core course exemptions in August. There are typically 2

ways to exempt from a class: 1) place out based on prior course work/certification, 2) testing out

through an exam in late August.

If at all possible, exempt out of at least one core class. Doing so will allow you to take Global

Financial Management during your first term, and will allow you to take Corporate Finance

during Fall 2. Having two finance courses completed in time for interviews, while not critical,

can be extremely helpful during the interview process.

Concentrations

Investment banking candidates typically aim to concentrate in corporate finance, investments,

finance analysis or a combination thereof. These concentrations provide a solid framework for

the finance-related themes and decisions faced in the real world. Of course, there is no

requirement that you concentrate to earn your degree or gain entrance into the world of finance.

Concentration in Finance (Corporate)

This concentration is designed for the following career paths: Corporate Finance, Venture

Capital & Real Estate, and International Finance. Students should note that electives may have

pre-requisite requirements. In addition, not all finance electives are offered each year. Both of

the following courses are required:

FINANCE 351 - Corporate Finance, FINANCE 352 - Investment

Choose one of the following courses:

ACCOUNTG 342 - Corporate Financial Reporting, ACCOUNTG 441 - Financial

Statement Analysis, ACCOUNTG 442 - Valuation & Fundamental Analysis


DECISION 312 - Decision Models, DECISION 410 - Decision Analysis

Choose two courses from the following set of finance electives:

http://www.fuqua.duke.edu/admin/stuserv/courseinfo/finance351.html


http://www.fuqua.duke.edu/admin/stuserv/courseinfo/accountg342.html



http://www.fuqua.duke.edu/admin/stuserv/courseinfo/decision312.html




FINANCE 356 - Entrepreneurial Finance, FINANCE 451 - Advance Corporate Finance,

FINANCE 452 - International Corporate Finance, FINANCE 455 - Corporate

Restructuring, FINANCE 456 - Emerging Markets, FINANCE 457 - Venture Capital &

Private Equity, FINANCE 458 - Raising Capital: Financial Instruments, Institutions &

Strategy, FINANCE 491 - Advanced Topics in Finance

Concentration in Finance (Investment)

This concentration is designed for the following career paths: Banking, Investment Management,

Research and Sales & Trading.

Both of the following courses are required:

FINANCE 351 - Corporate Finance, FINANCE 352 - Investment


ACCOUNTG 441 - Financial Statement Analysis, ACCOUNTG 442 - Valuation &

Fundamental Analysis


MGRECON 301 - Global Economic Environment of the Firm, DECISION 312 -

Decision Models, DECISION 411 - Forecasting

Choose two courses from the following set of finance electives:

FINANCE 353 – Derivatives, FINANCE 450 - Fixed Income Securities and Risk

Management, FINANCE 453 - Global Asset Allocation & Stock Selection, FINANCE

454 - Financial Engineering, FINANCE 458 - Raising Capital: Financial Instruments,

Institutions & Strategy, FINANCE 491 - Quantitative Finance, FINANCE 491 -

Advanced Topics in Finance

Dual Finance Concentration Option

Students wishing to obtain a dual concentration in Finance are required to complete a total of ten

courses which are broken down as follows:

1. take the two required courses for the two different Finance concentrations (FINANCE

351 and 352)

2. take one of the following (ACCOUNTG 342, 441 or 442)

3. take one of the following (DECISION 312, 410, 411 or MGRECON 301)








http://www.fuqua.duke.edu/admin/stuserv/courseinfo/finance491_302.html





http://www.fuqua.duke.edu/admin/stuserv/courseinfo/mgrecon301.html









http://www.fuqua.duke.edu/admin/stuserv/courseinfo/finance491_302.html



4. take two finance electives from the approved list of Corporate Finance elective courses

5. take two finance electives from the approved list of Investment Finance elective courses

6. take two additional finance electives from either the Corporate Finance or Investment

Finance elective sets

Note that FINANCE 458 and FINANCE 491 (Advanced Topics in Finance) may count toward

either the corporate finance or investments category but not toward both.

Financial Analysis

The Concentration in Financial Analysis is intended to provide skills and subject matter

knowledge that will prepare students for careers that use the analysis of accounting numbers to

support business decisions, such as consulting (e.g., strategic consulting, litigation support),

equity analysis (sell-side or buy-side analysis; portfolio management), commercial banking,

investment banking, financial positions in corporations (including in-house acquisitions

activities). The accounting courses in the concentration will provide a solid foundation for

preparation of pro forma financial statements, reading and analyzing financial reports, analysis of

cost drivers and costs (e.g., separation of fixed from variable costs), and valuation techniques.

The non-accounting courses augment students’ accounting knowledge with insight into the

drivers of profitability within and across industries (competitive analysis; intellectual capital and

competitive strategy), better ability to manipulate and analyze financial data (forecasting;

information management), and deeper understanding of capital structure and restructuring events

that change both asset compositions (e.g., via mergers or spin offs) and capital structures

(corporate finance; corporate restructuring).

Coursework

The following two electives are required:

ACCOUNTG 441 - Financial Statement Analysis, ACCOUNTG 442 - Valuation and

Fundamental Analysis

Choose one of the following electives:

ACCOUNTG 341 - Managerial Accounting or ACCOUNTG 491 - Management Control

and Financial Reporting

Choose one of the following electives:

ACCOUNTG 342 - Corporate Financial Reporting or ACCOUNTG 440 - Accounting for

Mergers and Acquisitions or ACCOUNTG 448 - Taxation and Global Management

Decisions









Choose two of the following electives:

DECISION 483 - Information Management, DECISION 411 – Forecasting, FINANCE

351 - Corporate Finance, FINANCE 455 - Corporate Restructuring, STRATEGY 339 -

Intellectual Capital and Competitive Strategy, MARKETNG 460 - Product Management,

MGRECON 431 - Competitive Analysis

Non-Finance Classes

It is worth your while to pursue any class you think will make you a better person and a better

finance professional. For instance, students may take up to two classes outside of Fuqua during

their business school career; the law school has a variety of popular and relevant courses on

M&A, venture capital, private equity, securitization and securities law.

Finance Club Resources

Finance Symposium & Finance Club Education Series

These are helpful resources for you to navigate the recruiting process and prepare yourself to

jump right in. The Finance Symposium is an event that brings in finance industry professionals

from Wall Street and Corporate America to discuss the most pressing issues shaping the

industry. See the Timeline for additional details.

Market Discussions

Attending Finance Club market discussions should provide a good foundation for the market-

based interview questions. Look out for announcements from the Club regarding topics and

meeting times.

Second Years Mentors

You will be paired with two second years (a Career Fellow and a Finance Club Fellow) to assist

you during recruiting. Career Fellows are assigned by the school and come from a variety of

backgrounds. The Finance Club Fellow will be assigned through the Finance Club and will be a

SY student pursuing the career path in your area of interest. These mentors went through the

process one year ago, and are integrally familiar with best practices. They are your best resource

for any questions.

Training the Street

Several times over the course of the year Training the Street will visit Fuqua and teach relevant

principles of finance that are very helpful in preparing for interviews and internships. Previous






http://www.fuqua.duke.edu/admin/stuserv/courseinfo/strategy339.html

http://www.fuqua.duke.edu/admin/stuserv/courseinfo/marketng460.html

http://www.fuqua.duke.edu/admin/stuserv/courseinfo/mgrecon431.html



topics have included Valuation, DCF modeling, and M&A and LBO modeling. Look out for

announcements from the Club.

Finance Club Website

Visit the club’s website (http://dukembafinanceclub.com/) and set up a login name and password.

This will give you access to a wealth of career advice and interview preparation materials as well

as announcements about upcoming Finance Club events.

On Your Own

Read!

In August, Fuqua will send out information regarding a discount subscription for the Wall Street

Journal. Definitely take advantage of this offer. Reading the paper daily, and keeping up to date

with the market and the financial news will be a huge asset as you go through the interview

process.

Additional resources are the Economist (which has a student subscription rate), Bloomberg

Magazine, Barron’s, The Gartman Letter, The Financial Times (including FT Alphaville).

Bloomberg, Capital IQ

The library offers access to Bloomberg and Capital IQ. Follow the directions at the circulation

desk to sign up for your account for each service. In addition, this year’s Week on Wall Street

event is expected to include a tour of the Bloomberg offices in New York, as well as a tutorial on

some of the primary functionalities provided by the service.

CMC

The CMC (Career Management Center) is set up to provide students with guidance and

information regarding the internship and full-time job search. The Finance Club is very lucky to

have its own CMC representative, Meg Flournoy. Meg is a great resource and very responsive to

students’ needs.

Alumni Directory

The Alumni Directory is a useful database that you may use once at Fuqua. This database will

give you access to the plethora of alumni in the working world and their contact information.

Current students can attest to how helpful Fuqua alumni have been in the job search. Please take

special care in regards to etiquette when reaching out to alumni.

http://dukembafinanceclub.com/



What you can do now

Most alumni will tell you to read the latest books concerning your potential career path. The

following is a list of books that we have been told to read by various alumni on Wall Street: Too

Big to Fail, Liar’s Poker, Option Volatility & Pricing, The Big Short, Money Business,

Distressed Debt Investing, When Genius Failed, Black Swan, Barbarians at the Gate: The Fall of

RJR Nabisco, Fool’s Gold, etc.

Reach out to people you already know in your prospective area of interest. Ask them intelligent

questions about what you can do to prepare to enter that specific or a similar area.

Visit the Duke MBA Finance Club web site.

Cover Letter and Resume

Resume

During your first month at school, your resume is your top career priority. Your resume

encapsulates, in one page, everything about who you are and who you want to be. At first glance,

a resume appears to be a backward looking document – everything on it has happened in the

past. In reality, however, a good resume is a prospectus: a forward looking document that tells

future employers about why they want to hire you. While your resume MUST be honest and

accurate you have substantial discretion on what to include and what to exclude. The rubric is

simple: include that which highlights the qualities recruiters consider important to the job you are

applying for.

You should have a number of people look at your resume and give you comments. While you do

not have to incorporate everyone’s suggestions, this will give you an idea of what an ―outsider‖

thinks of you when he or she reads your resume. Second years are a huge resource for resume

review. Even investment banking analysts find that second years who did summer internships are

able to provide them with helpful advice on how to make their resume more appealing to firms.

The Finance Club will organize a resume review where you can sign up to have a second year

look at your resume and provide feedback. You should also find additional readers on your own.

The CMC also provides a resume content review service through Career Fellows as well as

through the CMC itself, but most students find that this is NOT enough. Also, keep in mind that

a second year who has had success in the recruiting process may be able to give a different

perspective than that of a career management counselor.



You should take the resume review process extremely seriously and not wait until the last minute

to have people review your resume. This is especially true since many times, a firm will make

sure you are interviewed by someone who has not met you beforehand. In this case, their first

impression of you will be based on your resume. If your resume does not show you in the best

light possible, or is sloppy, you may not advance in the interview process no matter how much

rapport you developed with the firm over the course of the year.

Again, the CMC will provide some valuable best practices but here are a few finance-specific to

consider:

Banks take confidentiality very seriously. Do not put anything on your resume that

suggests you are breaching a former confidentiality agreement, whether formal or

informal (careful with client names if you were formerly in a client-service position).

Be HONEST! The difference between an interview and no interview, a job and no job,

will not likely be overcome by stretching the truth. Do you really speak fluent Spanish

(―Porqué el índice de acciones Chilenas "IPSA" no considera ninguna empresa minera de

cobre, siendo Chile uno de los mayores productores de cobre en el mundo?‖)? Were you

really an active member in XYZ club (Well, it just so happens that XYZ’s cabinet

member has the next interview)?

You can go either way on GPA – some firms will ask and some will not. You definitely

can’t go wrong either way but should be prepared to discuss if the topic comes up.

Don’t be afraid to have some fun with your ―Other Interests‖. Although seemingly

insignificant, this is an opportunity to differentiate yourself. Instead of ―Travel‖ say

where you like to travel. Instead of ―Movies‖ say which genre. Many have found that

they were asked about their other interests (because they were unique). Every interview is

a great opportunity for casual conversation.

Cover Letter

Most students spend too much time worrying about cover letters. The reality is that a cover letter

will virtually never advance your prospects. It must be taken seriously, however, because it can

seriously damage your application if it has errors. The best approach is to design a cover letter

that minimizes risk. With cover letters, resumes, and other written materials, accuracy is of the

essence. Read, reread, and read again.

Cover letters should be fairly simple. You don’t need to reinvent the wheel when writing them.

Use your cover letter to highlight why you would make a good fit for the industry, but that can

be quickly tailored for each specific firm to highlight the people you have met during the

recruiting process and what unique attributes of that firm appeal to you.

Most students structure cover letters with three main parts:



Introduction: Tell the reader what you are applying for and perhaps mention some of the

people to whom you have spoken.

Body: Highlight the parts of your past work experience and education that you feel are

the most relevant to the industry you are looking to enter.

Closing: Thank the reader for taking the time to review your resume.

Use second years, including your career fellows, as resources during the cover letter process.

A note for international students: Be sure to have native speakers proofread your resume and

cover letters to ensure that they are grammatically flawless. There is very little tolerance for

imperfect English in written materials of this level of importance.

Recruiting Timeline

For better or for worse, recruiting starts fast and it does not slow down. Review the timeline

below and understand your responsibilities.

August

o CMC sponsored events (see CMC for exact dates)

Learn about the general recruiting process including best practices, resume

advice, etc. These events are a good chance to get the wheels spinning

although they are generally not finance-specific. You will also earn bid

points1.

The CMC, in coordination with the Center for Financial Excellence and

several alumni will be hosting a new event this year that is tentatively

scheduled for August 7th

. This focus of this event is to provide incoming

students with some higher level education on careers in finance.

1 Bid points allow you to bid for an interview slot in the event you are not chosen by the company. In general,

however, investment banks do not allow candidates to gain a spot on the closed list via bid points. However, you

should still attend these events in the event you path diverges from investment banking.

Sep Oct Nov Dec Jan

Corporate Presentations

Resume Drops

Interviews

WOW

Informational Interviews

Closed list



September

o Finance Symposium (9/22/10)

o Finance Club events regarding recruiting

o CMC sponsored events – continued

Mock career fair, mock corporate presentation, resume review, LAMP list

o Meet your Career Fellow

October

o Week on Wall Street (Over fall break – October 21st – 27th)

This may be a good time to schedule some Informational Interviews

Travel to visit investment bankers and sales & traders and learn

about the job while also marketing yourself. Although not

mandatory, this is highly recommended.

o CMC sponsored events – continued

Cover letter review, mock interviews

o Company presentations begin

This will happen either at the end of September or beginning of October.

Last year kicked off on September 30th

. See CMC for listing of campus

visits.

o Informational Interviews

November

o Finance Club mock interviews

o Informational Interviews

o Reach out to firms on your LAMP list that do NOT recruit on campus. This is

very important so you have a safety net should on campus recruiting not work out.

December

o Resume Drops

o Closed Lists released

o Continue reaching out to firms on your LAMP list

January

o On campus interviews

Generally the first and second week of January – see CMC for exact

details

o Off campus interviews

Generally the second week and on

o Continue reaching out to firms on your LAMP list

February – May

o Interview continued

Not everybody gets a job right away – interviews continue, especially for

boutique investment banks. Keep monitoring the CMC job postings; it is



not at all uncommon for bulge bracket firms to post opportunities through

the spring.

Continue reaching out to firms on your LAMP list

Undetermined Dates

o Day in Charlotte

An opportunity to visit investment banks in Charlotte during this day trip

o Company-sponsored office hours, mock interviews, and case studies

Once specific dates are determined details will be circulated through the

Finance Club newsletter



Interview

Logistics

Interview closed lists generally come out in early- to mid-December, depending on the firm

and whether the interview is a result of on-campus or off-campus recruiting. For on-campus

recruiting, please check CareerCompass for the results. Do not send emails to the CMC or

the company asking for an update. As soon as the company submits their closed list for

interviews to the CMC, this information is updated in CareerCompass.

Preparation

Practice. Practice. Practice. You have about a month before interviews kickoff. Team up

with other people interviewing for similar positions. Practice your story, know every detail

on your resume and be able to put bullet points into STAR format.

Preparation Model

January (Interviews)

September

Understanding of Finance and Banking Industry

Basic Finance and Accounting Knowledge

Corp

Fin

WA

CC

Valu

ati

on

“Why

Bankin

g”

sto

ry

Confidence& Composure

SubjectAreas

FineTuning

WOW



Typical Finance Questions

See each section for function-specific questions

Past Experience

1. Walk me through your resume.

2. How do you work in teams?

3. Describe a time when you worked successfully in a team.

4. Describe a time when you worked successfully as a leader.

5. What kind of manager do you like?

6. What is the biggest risk you've ever taken?

7. What's your biggest failure?

8. What's your biggest accomplishment?

9. Give me an example of something quantitative you've done in the past.

10. Why did you change jobs from abc to xyz?

11. Tell me something you've quit.

12. Name a time when you've sold something.

13. What are your short/long-term goals?

14. Have you ever dealt with an ethically ambiguous situation? What did you do?

Personality Traits

15. Tell me about yourself - personal.

16. Tell me a joke. (Make sure it is clean)

17. If you could have dinner with anyone dead or alive, who would it be?

18. Describe yourself.

19. How would a friend describe you? How would your boss describe?

20. Why should we hire you over the other candidates we are going to interview this year?

21. If we gave you the offer right now, what would you say?

22. Name 3 traits to describe yourself.

23. Name 3 strengths.

24. Name 3 weaknesses.

25. Why wouldn't we hire you?

26. What's the most important thing to you?

27. What motivates you?

28. Name the best party you've ever been to.

29. If you had a day to do anything you like, what would you do?

30. What makes you unique?

31. What do you think of affirmative action?

32. What do you think of the president?

33. What's your favorite sport?

34. What interests you outside of work?

35. Why are you passionate about the markets?

36. How do you stay up to date with the markets?



Business School

37. Why business school?

38. Why Fuqua?

39. What's your favorite class? Teach me something from that class. What was your grade in

that class?

40. Do you like Fuqua? What do you like/dislike?

41. How has B-school changed your life?

42. What is your least favorite class?

43. Outside of classes, what is your favorite thing at school?

Firm-Specific

44. Why this firm? (Be able to give a quick history of the firm); also know recent

transactions and what actions (if any) did the given firm take to get through the

recession?

45. What other firms are you interested in?

46. Who is our CEO/Chairman? What is our market cap? What is our stock price?

47. Who do you know at this firm?

48. If you haven't done an informational here, why not?

49. Why would you pick our firm over the other firms that you are interviewing with?

Economy

50. Name 3 things you read in the paper today and tell me why they are important to the

markets.

51. If I gave you 1 million dollars, how would you invest it?

52. What's the safest possible investment in today's markets?

53. What role does the housing market play in the economy?

54. Where is the economy going? Why?

55. What do the recent economic data points mean for the economy?

56. Based on this, where would you invest? (Do your recommendations for stocks and

sectors etc. jive with your assessment of the economy?)

57. Name a fixed income product you would recommend me buying.

58. What factors control currency exchange rates?

59. What do you think the FED will do at the next meeting and why?

60. What did the FED do at the last meeting?

61. Do you agree with the FED's actions?

62. How can the government influence the economy?

63. Where do you see the S&P 500, DJIA etc. in the next year? Why?

64. How does inflation affect the bond market? The stock market?

65. Where do you think interest rates are going? Does this always depend on the FED?



Best Practices

Below is a list of some basic best practices. Of course this list is not all-inclusive so please feel

free to consult second years if you see a gray area.

A couple broad best practices to please be aware of anytime you are in the presence of a

recruiter:

Turn off your cell phone and never look at it during a company presentation, interview,

etc. If your cell phone is your timepiece, buy a watch.

Dress the part, shave, shower, etc.

―Punctuality is the courtesy of kings, the honor of a gentleman and the certain

obligation of any man (or woman) of business‖ – be on time!

Honor your commitments – if you say you will be somewhere, or do something – do it!

Do not skip company presentations, Week on Wall Street visits, etc.

Attending Company Presentations

Company presentations begin in earnest at the end of September. Be sure to sign up for them in

CareerCompass before the applicable deadline so the company has your name on their attendee

list. If you miss a deadline, you may still go to the presentation, but complications can arise. In

either case, be sure to sign in when the event begins so the company has a record that you

attended. A couple things to consider:

Pay attention to dress code although there will rarely, if ever, be an occasion when you

should dress business casual.

Have questions prepared – this will demonstrate that you are proactive and have a

genuine interest in the firm and the industry.

Wear your nametag.

The CMC has a list of best practices relating to company presentations and the

subsequent networking – good to review.

Thank You Notes & Email Correspondence

For those you spoke to at Company Presentations: Send a thank you note (email) only if you had

a meaningful conversation with the individual. Be sure to be specific in the note so that person

remembers speaking with you.

For those you met with for informational interviews: Send a thank you note (email) within 24-48

hours. Be specific in the note so that the person remembers your visit as they are likely to have

many informational interviews over the course of the fall. Also, stay in touch with the individual

and send them meaningful follow-up.



A couple key points on Thank You Notes:

Grammar must be perfect – no excuses. Ask someone to double check if you are unsure.2

Keep it short – the shorter the better. A rule of thumb is that the note should fit into a

single Blackberry screen. DO NOT summarize the company presentation and dive into

your theory on why you think the recruiter’s firm is well positioned in today’s economy

and how you liked the presenter’s tie and have wanted to be an investment banker (or

whatever position you will be applying for) since you discovered your first smart key in

excel.

Office Hours and Informational Interviews

See each section for additional details

2 If English is not your first language, it is a good idea to have a native speaker proofread any correspondence with a

recruiter. The CMC, in fact, has a program where people are staffed to proofread correspondence for non-native

speakers – see CMC for details.



Investment Banking


Welcome to Fuqua – you have chosen a fantastic MBA program that will give you all the

opportunities in the world to pursue investment banking. As Investment Banking Director for

the Duke MBA Finance Club, I will be your first resource in helping you navigate the recruiting

process and landing where you want to be.

Before Fuqua I spent four years with Deloitte & Touche in New York City as a CPA. It was a

great experience – accounting is a valuable background in the world of finance – but early on I

realized that I was not to be a career auditor and turned my sights towards investment banking.

Business school seemed like the best avenue to Wall Street so I engaged in the application

process you just completed. This summer I will be interning with Goldman Sachs in their

Financial Institutions Investment Banking Group.

There were several strategies I took that I found helpful. First, I figured out what I wanted to do

early and began networking as soon as I could. In fact, I visited more than a half-dozen banks

before arriving at Fuqua. This is certainly not the norm but if you have the opportunity to begin

networking early I suggest you do so. Second, I read the paper relentlessly and was active in

market discussions. It is my opinion that recruiters care more about your perspective on the

economy than how you did on a statistics quiz. Third, I worked hard and did not bite off more

than I could chew in the fall. This meant that my involvement in several ―fun‖ clubs did not take

off until Spring 1. This is just my story – take advantage of the second years as each seems to

have taken a different approach. There is no right answer.

Once again, welcome and please do not hesitate to reach out to me.


Ged Johnson

Investment Banking Director



WHAT IS INVESTMENT BANKING?

An ―investment bank‖ is a catchall term that refers to organizations that do some combination of

the following functions:

Provide strategic, financial and valuation advisory services

Raise capital through the issuance of equity, debt, or hybrid securities

Advise companies in merger & acquisition and restructuring deals

Offer specialized products and services that satisfy the needs of corporate and

governmental clients

Essentially, the bank is an intermediary between those who have money (investors) and those

who try to put it to use (clients/corporations). Some banks also have private equity investment

arms (making banks the investors) and private client services businesses (helping wealthy

individuals invest).

How are investment banks structured?

As illustrated below, investment banks span a variety of businesses including private equity,

fixed income, equities and private client services in addition to investment. For the purpose of

this guide, we focus on the vertical below ―investment banking‖.



Investment banking groups typically have industry groups, product groups, or some combination

thereof. All banks are not the same so it is important that you understand the difference between

them (See Bank Overviews” below).

Industry groups cover, you guessed it, industries. Most large investment banks will cover

virtually all industries in one capacity or another. For instance, some may have a dedicated

Aerospace & Defense industry group while another bank will consolidate this group into General

industrials – again, it is important you understand the group structure before you interview.

Product groups, conversely, typically include the following:

Equity Capital Markets (“ECM”) – This group has a focus on any transaction relating

to equity securities, for instance initial public offerings.

Debt Capital Markets (“DCM”) – This group focuses on investment grade debt related

transactions such as issuances. DCM is also an important group supporting the various

industry groups as many M&A and strategic transactions involve a debt component.

Leveraged Finance (“LevFin”) – Leveraged finance provides the same services as

DCM except for non-investment grade debt.

Mergers & Acquisitions (“M&A”) – This group focuses on the buying and selling

corporate entities or assets. Most bulge bracket banks have independent M&A groups

although it is not uncommon to find a bank where each individual group handles M&A

independently. Additionally, boutique investment banks typically focus exclusively on

M&A and in fact often specialize in buy-side or sell-side M&A

o Buy Side M&A: As a buy-side M&A advisor you help your client make

acquisitions. The buy-side process is more analytical and involves a tremendous

amount of due diligence and game theory as you navigate your way through an

auction held by the sell-side investment bank. It is important you properly

evaluate your target, understand the risks and trends, and identify a purchase price

just high enough to win the deal but not overpay. Meanwhile, you need to also

figure out how to pay for it (Hint: Call your friends at DCM). The biggest

downside of buy-side M&A is that the investment bank only earns a fee if you

win the bid.

o Sell Side M&A: As a sell-side M&A advisor you help your client make a sale.

In contrast to buy-side M&A, you will earn a fee as long as you find a seller. The

process as a sell-side advisor is different, where the primary focus is to manage

the sales process. You identify potential buyers, manage the due diligence war

room and evaluate the offers to ensure your client receives the greatest value in

the transaction (remember, transactions are not always executed in cash, hence the

―value‖ emphasis).



Should I be a product or an industry investment banker?

This is obviously your choice, and yours alone, but it is a great question to ask recruiters in the

fall. Industry group proponents will talk about enhanced client interface, the ability to work with

a variety of products and to truly become an expert in a particular industry, creating a valuable

platform into industry or private equity. Product group proponents will highlight the quantitative

emphasis and ability to become a true product expert working across many industry groups.

Product groups also tend to have more predictable hours although take this with a true grain-of-

salt and consider it relative only to an industry group.

What do recruiters look for in an investment banker?

This question is more complicated than it seems. Take a moment to look at the second years

who interned in investment banking last year – would you say they are all the same, more or

less? Probably not.

Below are some characteristics we believe are important – give some consideration regarding if

and how you fit into this framework. Back to the question above, regarding what the second

years have in common; they all wanted investment banking badly, for the right reasons, and

pursued it aggressively.

Desired Characteristic Opportunities to Demonstrate

Industry

Knowledge

• Knowledgeable of finance and banking

industry

• Excited by the work

• Understands differences in the

companies’ and groups’ cultures

• Finance Symposium

• Corporate Presentations

• Week on Wall Street

• Informational / Behavioral Interviews

Interpersonal • Will excel in the company

• Passes the airport test

• Demonstrated professional excellence

• History of delivering results

• Experience in driving change

• Networking events

• Resume

• Previous awards / recognition

• Information / Behavioral interviews

Analytical • Grasp of finance and accounting

• Basic valuation knowledge

• Problem solving skills

• GMAT scores, GPA’s, other degrees

• Technical interviews

• Market interrelationships

Management • Handles stressful situations

• Manages teams effectively

• Clear future career goals

• Leadership demonstration

• Composure during interviews

• Career goals interview questions



BANK OVERVIEWS

There are many ways to categorize investment banks, with many categories overlapping,

including bulge bracket, large, pure, full service and boutique. Below is a listing of those

investment banks that extending offers, through either on or off campus recruiting, in 2010

and/or maintain a consistent relationship with Fuqua:

Goldman Sachs & Co.

o Overview: Bulge bracket investment bank with a consistent relationship with

Fuqua, visiting campus each year extending three internship offers for the summer

of 2010.

o Internship Structure: Interns are placed into one of the following industry

groups; consumer retail, FIG, healthcare, industrials, leveraged finance, natural

resources or technology, media & telecomm. All M&A and equity transactions

are handled directly by respective industry groups.

o International Opportunities: On-campus recruiting focused on U.S. positions –

see CMC for additional details.

o Core Recruiting Team: Charles Lockyer (MD, Financial Sponsors), Neil

Wolitzer (VP, Real Estate), Kevin Lawi (Associate, Leveraged Finance), Andrew

Rutter (Associate, FIG) and Max Rahklin (Associate, FIG)

o 2010 Interns: Ged Johnson (Insert Group), Shaden Marzouk (Healthcare) and

Suma Prasad (Leveraged Finance)

RBC Capital Markets

o Overview: A growing middle-market investment bank which is beginning its

relationship with Fuqua. This past year, it extended two internship offers for its

New York office and one offer for its San Francisco office.

o Internship Structure: Generalist program where interns are staffed on

transactions across different industries.



o Core Recruiting Team

New York: Rob Cascarino (Director, Leveraged Finance), David Russ

(VP, leveraged Finance)

San Francisco: Devon Ritch (Director, M&A)

o 2010 Interns: Eric Lewandowski (NYC), David Rosenberg (NYC), and Nikhil

Sharma (SF)

UBS Securities LLC

o Overview: UBS is a bulge bracket investment bank, with a very strong presence

in private wealth and asset management. Fuqua is not a core school for the

investment bank, but they visit every year and have historically made offers (both



in IB & S/T). In 2010, two IB summer offers were extended, one on-campus and

one off-campus. Two other summer offers were also made in Sales & Trading.

o Internship Structure: The recruiting process is group specific, and the interns are

placed into one of the following industry groups: consumer retail, energy, FIG,

healthcare, industrials, leveraged finance, M&A, power & utilities, and

technology media & telecomm. The candidate should seek to get to know as

many as possible in his/her group(s) of choice. In 2010, the candidates are

allowed to interview up to two different groups at the second round.



o Core Recruiting Team: Gokay Urenay (Media), Anton Sahazizian (M&A); Both

of them conduct interviews on campus; Recruiting/Campus Coordinator Andi

Parsley

o 2010 Interns: Todd Lyall (Power and Utilities), Frederick Kuo (Health Care)

Credit Suisse o Overview: Bulge bracket investment bank consistently serving as one of the

Fuqua Finance Club’s major sponsors, extending four internship offers for the

summer of 2010.

o Internship Structure: Interns are placed directly into a product or industry

group. Typically smaller Summer Associate class sizes ensure participation in

live transactions, while the capstone is an independent project/pitch presented to

senior bankers at the end of the internship.

o International Opportunities: Truly a global investment bank with opportunities

worldwide, although campus recruiting is focused on domestic placement.

o Core Recruiting Team: Steve Pierson (MD, FIG), Bill Raincsuk (MD, TMT),

Peter Fritz (VP, Global Industrials) and Avinash Vijaysankar (Associate, TMT)

o 2010 Interns: Meghan Gallagher, Gaurav Mittal, and David Wishen

Barclays Capital o Overview: Bulge bracket investment bank with a consistent relationship with

Fuqua, visiting campus each year and extending eight internship offers for the

summer of 2010.

o Internship Structure: Interns are placed into industry or product groups. Interns

rank there top choices and the bank places them according to availability. If you

become a full-time employee, your first year as an associate will be spent rotating

among three different groups after which you will be permanently placed. M&A

product group not available as an associate (handling by each individual group).



o Core Recruiting Team: Henry Johnson (MD, Mergers & Acquisitions), Jason

Trock (VP, FIG), Eric Javidi (Associate, Natural Resources ), Tim Hagerty

(Associate, DCM), Anthony Cottonaro (Associate, FIG), Jesse Shefferman (VP,

Healthcare) and Claire Pearson (Associate, Healthcare)

o 2010 Interns: Santiago Stel, Samayita Das, Peter Fazio and Aki Garrett.



Morgan Stanley


Fuqua, although Fuqua is not a core recruiting school. Morgan Stanley intends to

make annual trips to campus and made two internship offers for the summer of

2010.

o Internship Structure: The majority of the Summer Associate class joins the

Associate "pool" alongside full-time Associates. However, exceptions to

accommodate intern preferences and bank needs are made. You may have the

opportunity, for example, to move directly into Real Estate, Global Capital

Markets or the Financial Institutions Group, among others.



o Core Recruiting Team: Whitney Horne (Associate), Renuka Nayani (Associate),

Matthew Morse (Vice President), Carl Nordberg (Vice President).

o 2010 Intern: João Carlos A. B. Soares (LatAm Group).

JP Morgan Chase

o Overview: Bulge bracket investment bank with consistent relationship with

Fuqua, visiting campus several times during the fall semesters and hosting the

Finance Club during Week on Wall Street. JP Morgan extended three investment

banking offers for the summer of 2010.

o Internship Structure: Interns are placed directly into product or industry groups.

Incoming interns are invited to a ―Sell Day‖ in the winter and afterwards are

asked to preference their group choice.

o International Opportunities: On-campus recruiting focused on New York

positions – see CMC for additional details.

o Core Recruiting Team: Sarah Youngwood (Executive Director, FIG), Matt Sable

(Associate, FIG), Warfield Price (VP, Debt Capital Markets), Xavier Vegas

(Associate, Latin American), Robert Birdsey (Associate, Natural Resources), Jerel

Registre (Associate, FIG) and Amy Bell (Associate, M&A)

o 2010 Intern: Shawn Saparamadu, Caoi Sarhan

Harris Williams & Co.

o Overview: Middle market investment bank with sell-side M&A focus. Although

headquartered in Richmond, HW&Co. has offices across the country and now in

London, allowing candidates the opportunity to express a regional preference.

HW&Co. maintains a consistent relationship with Fuqua, visiting campus many

times over the course of the academic year and participating in various Finance

Club and Private Equity Club events. HW&Co. extended two internship offers



for the summer of 2010.

o Internship Structure: Generalist program spanning ten industries including

Consumer, Energy & Power, Healthcare, Industrials, Telecomm and

Transportation among several niche industry groups. Recent interns have

typically had financial services experience prior to attending Fuqua which is an

advantage given the less formal training structure typical in the middle market.

o International Opportunities: HW&Co. opened a London office, the first

international office, within the last twelve months.

o Core Recruiting Team: John Neuner (Managing Director), Sam Hendler (VP,

Boston), Joe Sporacino (VP)

o 2010 Interns: Christopher Zeien (Boston), Quinn Amesbury (Richmond)

Bank of America Merrill Lynch


Fuqua, visiting campus each year extending three internship offers for the summer

of 2010.

o Internship Structure: Interns will rotate throughout the summer (generalist

structure) into any of the following groups: Consumer & Retail, Energy & Power,

Financial Institutions (FIG), Financial Sponsors, Global Industrials, Healthcare,

Mergers & Acquisitions (M&A), Real Estate, Gaming & Lodging, or Technology,

Media & Telecom (TMT).



o Core Recruiting Team: Brian Kinkead (MD, Global Healthcare Group), Cavan

Yang (VP, M&A), Tanya Joseph (Associate, Global Healthcare Group), Piyush

Phadke (Associate, Financial Sponsors), Mike O’Leary (Associate, TMT),

Jonathan Lesko (Associate, FIG)

o 2010 Interns: Rafael Blanco, Sam Payton, Matt Walsh

BNP Paribas

o Overview: BNP Paribas is a global leader in banking and financial services, and

one of the world’s top five banks. The bank has little relationship with Fuqua,

but receives resumes for off-campus recruiting.

o Internship Structure: Interns are placed into one of the following groups;

Corporate Finance (M&A and Equity Capital Markets) or Structured Finance

(Loan Syndications, Leveraged Finance, Structured Debt, Export Finance or

Project Finance)

o International Opportunities: Off-campus recruiting focused on U.S. positions.

o Recruiting Team: Stephanie Godfrey (Human Resources)



o 2010 Interns: Felipe Hartwig (LATAM)

Lazard

o Overview: Premier middle market investment bank supporting M&A, financial

restructuring, and private placement services. Headquartered in

Minneapolis, with offices in New York, Chicago, and Charlotte. LLM has

extended one 2010 summer internship offer for the Healthcare group based in

Charlotte.

o Internship Structure: Generalist and specialist programs available covering nine

industries including Business Services, Consumer, Energy/Power/Environment,

Food & Agriculture, Healthcare, Industrial Products & Manufacturing, Media &

Communications, Plastics & Specialty Chemicals and Technology. Interns

typically have financial services experience prior to attending Fuqua to

complement the less formal training structure typical in the middle market.

o Core Recruiting Team: Scott Smith (Managing Director, Charlotte), Julie Stock

(Head of Recruiting, Minneapolis)

o 2010 Interns: Corum McNealy (Charlotte)

Wells Fargo

o Overview: Bulge bracket investment bank with robust Fuqua pipeline. Wells has

investment banking opportunities around the country and recruiters visit campus

from a variety of offices

o Internship Structure: Interns are placed into one of the following groups:

Consumer, Healthcare & Gaming (Charlotte, New York), Energy & Power

(Charlotte, Houston), Equity Capital Markets - Origination (New York), Financial

Institutions (Charlotte), Industrials (Charlotte, New York), Middle Market Group

(Charlotte), Non-Investment Grade Debt Capital Markets (Charlotte),

Technology, Media & Telecom (Charlotte, New York, San Francisco)



o Core Recruiting Team: Steven J. Taylor (MD, Debt Capital Markets, High

Grade Fixed Income), Kevin Scotto (Director, Non Investment Grade Debt

Capital Markets), Michele M. Anene (Associate, Consumer, Healthcare &

Gaming Investment Banking) Adam Huitt (Associate, Consumer, Healthcare &

Gaming Investment Banking)

o 2010 Interns: Shal Chowdhury (M&A), Sharad Raisinghani (TMT), Dwayne

Wyre (Non Investment Grade Debt Capital Markets)

Fuqua maintains relationships with many more financial institutions, see CMC website

for a complete list. Notables include Citigroup, Piper Jaffrey, BB&T Capital Markets,



M&T Bank and a variety of boutiques.

Pre-Interview

Office Hours

Several companies have office hours for investment banking. If they do, please attend. Bring a

resume, business cards, and be ready for an informal interview!


The informational interview is often referred to as the ―Round 0 Interview‖. On paper this is an

opportunity to exchange information with a potential employer – a true learning opportunity for

both parties. In reality, it will be the first impression you make upon the investment bank so it is

highly recommended you schedule informational interviews only if you are prepared for a real

interview.

Some informational interviews begin with the banker asking ―How can I help you?‖ and you

spend the entire session talking about career moves, the markets, last night’s Yankees game, etc.

Other informational interviews can be more intense – Why banking? Why our firm? Walk me

through an LBO model? It is hit or miss so be prepared. You probably won’t earn a place on a

closed list with an information interview but you can easily lose a spot.

Informational interviews should be taken very seriously. Here is what we recommend as the best

approach:

1. Approach the contact with whom you have connected best, this can be an associate or a

VP but should not be a managing director. Send them an e-mail expressing interest in

setting up an informational interview. They often will try to set you up with a person in

your group of interest so feel free to be specific regarding the type of person with whom

you would like to meet.

a. Some firms have streamlined the informational processes where a single person

will be charged with managing informational interviews – be sure to pay attention

during company presentations to see if this is the case with your target firm.

2. Prepare as though it is an interview. Some interviewers will ask you tons of questions

while others will sit back and wait for your questions – on that note, have good questions

prepared.

3. Wear a suit, get to the office early – again, treat it like an interview.

4. Send a thank you note after the interview.

What are “Good Questions”



Whether attending a company presentation, office hours, an informational interview or the real

interview – you will be called upon to ask questions and it is wise to make them good questions

– some things to consider when you prepare your questions:

Should I know this already?

o Ex: Asking somebody a question that has already been asked or is obvious – don’t

ask somebody what group they are in if it is on the nametag.

Can I learn this on the company website?

o Ex: How many people are at your company?

Can I learn this on the CMC website?

o Ex: When is your resume drop date?

Can I learn this from a second year?

o Ex: What is it like to be an associate intern?3

Investment Banking Interview

How do I apply?

For on-campus opportunities you will apply through Career Compass. Generally this involves

submitting a resume and a cover letter. Often the banks will also ask you to submit an

application on the company website – be sure to pay attention through the fall as recruiters will

be clear regarding their expectations.

Off-campus opportunities are case-by-case and each respective Human Resources department

will guide you through the process.

How will I find out if I got an interview?

With on-campus opportunities you will receive an e-mail from the CMC regarding your

interview status and your status will also be updated within Career Compass. You will either be

invited to interview, declined an interview or waitlisted.

When are interviews?

Do not plan that long awaited trip with your husband/wife/fiance/friend/relative/cable guy to the

Maldives over New Year’s; interviews come in a hurry. Most on-campus investment banking

interviews begin around the first or second week in January (last year’s interview season kicked

off on January 6th

). Each company is different but most on-campus interview schedules involve

a first and final round on campus within a 24 or 48 hour period. Some banks, though, will do

3 One of my least favorite questions to hear a candidate ask is ―What is it like to be an associate?‖. In fairness, there

are very few people who could actually tell you what it is like – the seconds years have only been associate interns.

You will have a few classmates who left associate programs to pursue other things; seek these people out. With this

question – it is fair to ask but tailor it properly – if a recruiter rotated between several groups ask how the cultures

varied. Or ask about a particularly memorable deal.



first round interviews on campus and final round interviews at their office. Some will do all

interviews in the office.

Interview Questions & Answers

The Finance Club website has a comprehensive and helpful collection of interview questions and

answers – please see the website and practice, practice, practice.

Generally speaking, my interviews all, without exception, followed this template:

Walk me through your resume including a follow-up question or two on the resume.

What are your strengths and weaknesses (These questions can be asked a thousand ways

but they are always asked)

Accounting question (i.e., How does depreciation flow through the three financial

statements?)

Valuation question (i.e., what are the valuation methods?)

Market question (i.e., Tell me a deal you are following? Where do you invest?)

I always heard about the ridiculous and meticulous questions you might be asked in an

investment banking interview and to be frank – I never once got these questions. I was never

asked how many ping-pong balls fit in a 747. I was also never asked the price of oil. Here is my

theory; if you come across as confident but humble (i.e., professional) the interviewer will treat

you like a professional. However, if you are unprepared and stumble through some basics the

recruiter may smell blood – it is at this point you may be poked with unpleasant questions – what

is the GDP of Uruguay? Where is the VIX? What is the 10 year yielding?



Sales and Trading


By means of a short introduction, I am the Sales & Trading Director for the Finance Club and

your key second year contact for anything Sales & Trading related.

Prior to Fuqua, I spent five years at JPMorgan in New York. I spent 1.5 years there in a

Leadership Development Program and 3.5 years working on an Investments desk in the Private

Wealth Management business. I am spending the summer interning at UBS in their equities

division.

We had a very successful year for Sales & Trading internship recruiting and the Finance Club is

looking to expand and make this coming year even better. We hope this information guides you

throughout a hectic first two terms and arms you with the material to make an impact with

prospective employers.

Should you need anything during the recruiting season, please do not hesitate to contact me. I

look forward to working with you this year!


Jim Heaney

Sales & Trading Director

What is Sales & Trading?



What do traders do?

There are two basic types of traders: flow and proprietary. Flow traders make markets for clients

of the investment bank by matching buyers and sellers. Proprietary traders use firm capital and

take positions based on information gathered from research and models. Propriety trading at

bulge bracket firms has recently been in the news as potential areas of regulation. As an aside,

many firms allow their flow traders to take some proprietary positions. Again, this all depends

on the firm.

What do salespeople do?

Salespeople, quite simply, sell products. They are the relationship managers for the investment

bank. They use research from the investment bank and their knowledge of their client base to

market products that make sense for their clients.

What do structurers do?

Structurers are responsible for creating and developing new products for the investment bank.

Structurers consider client needs, tax issues, risk parameters, market dynamics, and other issues.

In some firms, structurers double as salespeople.

What are some types of desks? Sales & Trading divisions within each investment bank are set up

differently. Many share the same types of desks. Here is a brief list of desks (most are self

explanatory):

Convertible Bond Trading, Equity Derivative Trading, Equity Research Sales, Index Arbitrage,

FX Sales, Natural Gas Trading, Block Trading, Municipal Bond Sales, Correlation Trading,

Volatility Trading, etc.

This is an exceptionally small sample of available desks. Many bulge bracket firms have dozens

and dozens of desks that may be of interest to you.



Bank Overviews

Here is a list of firms that have made offers to students during this school year. In the past,

students have also obtained offers at smaller brokerage firms and hedge funds. If you are

interested in Sales & Trading, do not limit yourselves to the firms below.

UBS

o Overview: Bulge bracket investment bank with a new relationship for S&T with

Fuqua. Previously, UBS had focused on Investment Banking at Fuqua. UBS

extended three internship offers (Equities) and one full-time offer (FICC) for

summer 2010.

o Internship Structure: Interns are placed into the Equities division or Fixed

Income, Currencies, & Commodities. In those divisions, interns can expect 2-3

rotations.

o Recruiting Team: Tim Chiodo (Associate)

o 2010 Interns: Jim Heaney (Equities), Neil Advani (Equities) o 2010 Full-time: Will Moreno (FICC)

Bank of America Merrill Lynch

o Overview: Bulge bracket investment bank with a long standing relationship for

S&T with Fuqua. The company extended two internship offers for Summer 2010.

o Internship Structure: Interns are placed in 3 rotations which cover Equities,

Fixed Income, Currencies & Commodities.

o Recruiting Team: Steve Celona (MD), Kristen Hill (Associate), Matt Mallouin

(Associate), Tim Cassidy (Associate), Michie Miller (Associate)

o 2010 Interns: Dan Kim

Citigroup

o Overview: Bulge bracket investment bank with strong Fuqua alumni base. The

summer associate program is deliberately kept small. Citi extended two

internship offers for Summer 2010.

o Internship Structure: US Interns are placed in 3 rotations which cover Equities,


o Recruiting Team: Tyrone Thomas (VP), Robert Giacomelli (Associate), Curt

Demers (Associate)

o 2010 Interns: Boris Moyston (NYC), Philip King (Hong Kong)

Barclays Capital

o Overview: Bulge bracket investment bank with strong Fuqua relationship.

Barclays extended two internship offers for Summer 2010.

o Internship Structure: US Interns are placed in 3 rotations which cover Equities,


o Recruiting Team: Steve Gordon (Associate), Jim Kernan (Associate)

o 2010 Interns: Lia Arapoglou (NYC), Lawrence Pang (Singapore)



BNP Paribas

o Overview: European investment bank with growing Fuqua relationship. BNP

extended no internship offers for Summer 2010, but did extend one full-time

offer.

o Recruiting Team: Jim (MD), Hampton Smith (MD)

Deutsche Bank

o Overview: Bulge bracket investment bank with little/no relationship with Fuqua.

Deutsche Bank extended one internship offer for Summer 2010.

o Internship Structure: Placement directly into group.

o 2010 Interns: Mike Kaag (TX)

Glencore

o Overview: Global commodities and raw materials supplier with sales & trading

division.

o 2010 Interns: Lauren Willoughby (CT & London)

Pre-Interview

Office Hours

Few companies have Office Hours for Sales & Trading. If they do, please attend. Bring a

resume, business cards, and be ready for an informal interview!


An integral part to getting on closed lists for interviews is Informational Interviews. You should

set these up as soon as you are ready. In essence, these are interviews. Here are the steps to set

up an informational interview.

1. Email an alumnus. Briefly introduce yourself and ask for time on his or her schedule

where you can visit that person at their office and sit with him/her.

2. Try to set up multiple informational interviews for the same day (first by company and

then if time permits other firms). Please be sure to leave enough time for travel.

3. On the day of, dress in business formal attire, bring resumes, and business cards.

4. Write a personalized thank you note to those people you have met. Keep it short. Stay in

touch with that individual.

The informational interview provides you with time to ask the individual questions about his/her

job. You should have a list of prepared questions to avoid pauses in the discussion. Many times

these informational interviews will be more conversation based. Ask smart questions. Even

though these are not formal interviews, treat them as such. Do not pull out your cell phone,

PDA, etc. Also, consider all information you see to be private and confidential.



Stock Pitches

Pitches are an important part of the recruiting process. You should have a few long and short

stock pitches. Do not limit yourself, however. You may also have other investment ideas (fixed

income, foreign exchange, etc.). Alumni will be impressed if you have well thought out ideas.

Think quality over quantity! Here is a very brief stock pitch that I used this past year.

It is also important to have a story behind each stock you are pitching. For example, I discussed

how the healthcare bill could potentially increase sales of their main drug Revlamid. I also

discussed marketing expansion outside the US as a way to boost sales. Additionally, CELG

bought Gloucester Pharmaceuticals in late 2009. Try to have 2-3 theme ideas why your

particular stock is a long or a short.

S&T Interviews

Sales & Trading

1. Why sales & trading?

2. Sales or trading?

3. What makes a good sales person?

4. Tell me what a trader does.

5. What makes a good trader?

6. Equity or fixed income?

7. If you couldn't do sales & trading, what would you do?



8. A customer gives you a buy order which you complete. Afterwards, she/he claims it was

a sell order what do you do?

Stocks

9. Here are three sectors (Paper, Defense, Tobacco, Technology, Software, Healthcare, it

could be anything). Are you long or short and why?

10. Name 3 sectors that you are long.

11. Name 3 sectors you are short.

12. Name a stock in each sector in the two questions above.

13. Give me 3 stocks you are long.

14. Give me 2 stocks you are short.

15. How do you value a company?

16. What ratios do you use when valuing a company?

17. When you look at a company's financials, what do you look at first, second, third and

why?

Market Data

18. Where are the S&P 500, DJIA, and NASDAQ? What are the percent increase/decrease

YTD? Last 12 months. Last 3 years.

19. Same questions as #25 for FTSE and NIKKEI.

20. What is libor? What is libor's current level?

21. Draw today's yield curve: 3m, 6m, 2yr, 3yr, 5yr, 10yr, 30yr.

22. What is the price of oil, natural gas or gold?

23. Where are the following currencies trading? Euro, Brit. Sterling, Yen.

24. What was the most recent unemployment, consumer confidence number, housing starts,

personal spending etc. etc. number? (know all recent economic data points)

General Finance & Math

25. What is spot? What is a forward rate?

26. What is duration? What is the duration formula? How does it work?

27. What is Black-Scholes? What are the main components of B-S?

28. What is the square root of .1?

29. What is 13/16?

30. What is the yield curve?

31. If interest rates drop 20 basis points, how much does a zero coupon 2yr bond's

increase/decrease?

32. What is the Dow Jones Industrial Average? How does it work?

33. What is CAPM? Why is it useful?

34. A sports player (let's say baseball) will have the option to get paid a fixed bonus (let's say

$5 million) or a bonus based on how many homeruns he has hit over the course of a

season. If he chooses the bonus based on homeruns, he will get paid $166,000 per

homerun that he has hit over the season. The baseball player will have to make the choice



between either bonus structure halfway through the season. How would you value this

option at the beginning of the season?

Interview Brainteasers

A train leaves from NYC heading towards LA at 100 mph. Three hours later, a train leaves from

LA heading towards NYC at 200 MPH. Assume there's exactly 2000 miles between LA and

NYC. When they meet, which train is closer to NYC?

What is the sum of integers from 1 to 100?

A snail is climbing up a 10 foot pole, it climbs 3 feet per day. While it sleeps at night, it slides

down by 1 foot. When does it reach the top of the pole?

Your sock drawer contains 8 red socks and 11 blue socks that are otherwise identical. The light is

broken and you must select your socks in the dark. What is the minimum number of socks you

need to take out to guarantee a matching pair?

You are given a scale and a set of 12 marbles. One of the marbles is a different weight; it may be

lighter or heavier than the rest. Identify and discard the different marble using the scale a

maximum of 3 times, and determine whether it is heavy or light.

From the term structure of interest rates you see that the five-year spot rate is 10% and the ten-

year spot rate is 15%. What is the implied forward rate from year five to year ten?

Source: NYU Stern

S&T Lingo

Sales & Trading has its own language. It is important to be aware of some basic words that you

may hear in speaking with people at various firms.

The Greeks – Traders are very concerned with delta, gamma, theta, and vega. Know what these

are!

Pip – Measure in price of FX

Vol – Short for volatility

CDS or CDX – Acronym for credit default swaps or credit default index

YTW – Acronym for yield to worst



Private Wealth Management


Welcome to Fuqua and to the Finance Club!

First, I wanted to give you a little background on myself. After college, I worked for 3 years as

an analyst at Citigroup in their Asset Backed Securitization Group before returning to business

school. At first, I was most interested in pursuing an Asset Management internship. However,

after learning more about Private Wealth Management, I realized the field was more closely

aligned with my interests and strengths.

Many of you may have already determined what position you would like to pursue. Regardless

of if you have come to a decision, I would encourage you learn about each track. You may

discover another area that suits your personality and interests. Selecting an area to target early in

the process will enable you to narrow your focus and allow you to make the most of the

networking time you will have during the fall term.

I hope to act as a resource to anyone who is interested in pursuing an internship in Private

Wealth Management. I plan to host bi-weekly meetings to discuss various aspects of the

industry, best practices, and interview preparation. I hope these sessions will be helpful to you

as you manage your way through the process.

Please feel free to reach out to me any time with questions, concerns, etc.


Megan Walsh

Private Wealth Management Director



What is Private Wealth Management?

Generally, Private Wealth Managers work with clients (―high net worth individuals‖) to allow

them to manage their portfolios in the most efficient way possible. Where clients in the

investment bank are corporations, clients in PWM are individuals, some with a highly

sophisticated understanding of financial services, and others who have no knowledge of their

finances and the best way to manage them. Think of it this way, working in PWM requires that

you are able to understand highly sophisticated financial solutions, and be able to explain them to

either the head of a hedge fund, or your grandmother in a way that each will understand. One

other thing to note, this is a personal business – you will be handling the finances of your clients

and gains and losses, good decisions and bad ones, will directly affect the client, so having a high

level of emotional intelligence is important.

More formally, a role in Private Wealth Management involves providing customized and

sophisticated investment management and financial planning services delivered to high net worth

individuals, corporate executives, and institutions such as foundations and endowments. Private

Wealth Managers provide a personalized approach to financial management, tailoring portfolio’s

to meet the specific needs of each client. The goal of PWM is to offer services that maintain,

grow and provide efficient transfer of wealth. Clients may face a variety of financial and

investing needs that the bank suits, such as:

Estate planning Investment management /asset allocation

Trust restructuring o Equities

Stock Option Planning o Fixed Income

Tax Planning o Alternative Investments

Roles:

There are three primary roles in Private Wealth Management, though depending on the firm,

several of the below may be combined

1) Relationship Manager (―Banker‖ or ―Private Wealth Advisor‖): Primarily a

relationship management role. Typically the first point of contact for clients.

Sourcing new clients is a large component of this role

2) Investment Specialists: Focused on providing in depth analysis of the market and

trends. Also in charge of executing trades of the clients behalf

3) Product Specialist: Typically not offered as an internship position, product specialists

focus on one specific investment category (alternative investments, fixed income,

foreign exchange)



Bank Overviews

Goldman Sachs & Co.

o Overview: Large and growing Private Wealth Management unit. Consistent

relationship with Fuqua, visiting campus each year extending three internship

offers in Private Wealth for the summer of 2010.

o Internship Structure: Interns work in a generalist role, focused primarily on

relationship management and new client origination. Interns will rotate among

different teams, and regional rotations are available in various offices around the

country. Classroom training is an integral part of the program.

o Core Recruiting Team: Joshua Block, Thomas Brasco, Steve Nowak

o 2010 Interns: Bob O'Reilly Jr., Ray Sorrentini, Devin Fitzgerald

J.P.Morgan

o Overview: Fuqua has a strong relationship with the Private Bank, which serves

the needs of ultra high net worth individuals. JPM , visiting campus each year

extending three internship offers in Private Wealth for the summer of 2010.

o Internship Structure: Interns rotate on 3 teams, assisting with client relationships

and investing. Regional rotations are available in various offices around the

country. Classroom training on the market and public speaking is an integral part

of the program.

o Core Recruiting Team: Joseph Markovich, Caroline Brecker, Katy Knipp,

Bronwen Baumgardner

o 2010 Interns: Trey Epps, Christopher Thompson, Megan Walsh

Morgan Stanley

o Overview: Global financial services firm, runs PWM through its Global Wealth

Management Group. Morgan Stanley does not currently recruit at Fuqua for

PWM,

o Internship Structure: Interns participate in a 10-week program focused on

Morgan Stanley’s platform, products and solutions. Interns will work on team

and individual projects, including managing a portfolio, developing a business

plan, pitching to mock clients, and generating viable prospects through multiple

mediums

Barclays

o Overview: Bulge bracket investment bank with a strong PWM area. Barclays

PWM visited Fuqua this year.

o Internship Structure: Internship consists of a ten-week program where interns

will learn about financial markets, products, tools and services Barclays offers.



UBS

o Overview: UBS is a bulge bracket firm, with a very strong presence in private

wealth and asset management, particularly internationally. UBS does not recruit

for PWM at Fuqua, so students interested in the firm will have to pursue an off

campus search.

o Internship Structure: Intern participate in a 10-week program focused on UBS;

platform, products and solutions

Pre-Interview


Unlike Sales and Trading and Investment Banking, it is not necessary for PWM candidates to

travel to New York to show interest in the firms. The recruiting teams for PWM tend to be

small. Students will have the opportunity to develop relationships with the recruiting team

during on-campus visits.

PWM Interviews

General questions:

1. Why PWM? Why PWM over Asset Management?

2. What other firms are you interested in? What do you see as the primary differences?

3. In which geographic location are you interested in working and why?

4. For some firms: Which role are you most interested in (banker/investor) and why?

5. What tactics would you use to find new clients? How would you approach them?

6. How has your past experience prepped you for this role?

7. What was the name of your last interviewer? (trying to test your ability to remember

8. clients/information)

9. Without the ability to give clients recommendation directly, how will you add value this

10. summer?

Case Questions: (for some interviews, you may be presented with a short summary of a

potential client)

11. You’re meeting with a new client, in 2 minutes explain what happened in the market over

12. the past year?

13. Based on this, where would you invest?

14. If I gave you 1 million dollars, how would you invest it?

15. What questions would you have for this client?

16. What areas would you try to gain further clarification on?

17. What concerns do you have about this client?

18. What products/services would you discuss with the client?



Corporate Finance


By means of a short introduction, I am the Corporate Finance Director for the Finance Club and

am here to be your key contact for anything Corporate Finance related.

I spent four years prior to Fuqua at FBR Capital Markets in Washington, D.C. managing the

Finance Planning and Analysis Group. Prior to FBR, I spent 3 years working as a consultant for

a boutique economic consulting firm specializing in the field of international transfer pricing.

This summer, I will be interning at Liberty Mutual Insurance in their Middle Market Distribution

Group in Boston.

We have had a successful year for Corporate Finance internship recruiting and the Finance Club

is looking to expand and make this coming year even better. We hope this information guides

you throughout a hectic first two terms and arms you with the material to make an impact with

prospective employers.

Should you need anything during the recruiting season, please do not hesitate to contact me. I

look forward to working with you this year!


John Boyum

Corporate Finance Director



What is Corporate Finance?

Overview

In corporate finance, you’ll deal with the financial decisions made by the company you work for,

with the goal of maximizing the value of the corporation, while minimizing risk.

Corporate finance and accounting professionals are responsible for managing a business's money

- forecasting where it will come from, knowing where it is, and helping its managers decide how

to spend it in ways that will ensure the greatest return. They pore over spreadsheets that detail

cash flow, profitability, and expenses. They look for ways to free up capital, increase

profitability, and decrease expenses. If any department wants to make a big expenditure, it’s

usually got to be run by the folks in finance first to ensure that the company is in a position to

fork over the dough. They’ll look at the best growth path for the company, whether that’s

through acquiring other companies or re-investing in the business to expand internally.

A company's size, complexity, industry, and stage of development - for example, whether it’s a

startup or established business - determine its corporate finance department's specific

responsibilities. All companies need to balance their books. But some large technology

companies, for example, also need to hire financial experts to value potential acquisitions. Others

(e.g., insurance companies) have hundreds of millions of dollars to invest and need financial

wizards to manage that money.

What will you do as a corporate finance professional?

Corporate finance includes two key functions: accounting and finance. Accounting concerns

itself with day-to-day operations. Accountants balance the books, track expenses and revenue,

execute payroll, and pay the bills. They also compile all the financial data needed to issue a

company's financial statements in accordance with government regulations. Finance

professionals analyze revenue and expenses to ensure effective use of capital. They also advise

businesses about project costs, make capital investments, and structure deals to help companies

grow.

In spite of their different roles, finance and accounting are joined at the hip: the higher levels of

accounting (budgeting and analysis) blend with financial functions (analysis and projections).

Thus, finance and accounting are often treated as one, with different divisions undertaking

particular tasks, such as cash management or taxes.

What do recruiters look for?

Finance and accounting jobs require strong analytical and quantitative skills. If you have a knack

for using numbers to understand patterns that influence business, you'll be of great value to your

employer. You should also enjoy and excel at solving problems and be able to think critically

about the numbers you're working with. Think of it as cracking a code: you need to take all of

these numbers - income, expenses, profits, investments, cash flow - and decipher them in order

to make the best decisions for the company.



To succeed in these careers, you need a strong attention to detail. To make wise business

decisions, your employer will be depending on you to get the numbers right - every time. In

order to do that, you’ll also need to have an understanding of and an interest in business. That

includes reading industry and business publications to understand market conditions, economic

forecasts, and trends. Finance professionals need to look at external factors that could potentially

help or hurt profitability. This may be the career for you if you can effectively evaluate business

scenarios and recommend a course of action based on quantitative research.

Career Tracks

Although conditions vary at different companies, people going into corporate finance generally

start their careers either as staff accountants (for the corporate reporting function) or as financial

analysts (for a business group or function). In both roles, you'll supply management with the

information it needs to make smart, opportune decisions.

Staff accountants consolidate information for the official corporate financial reports—primarily

comparing the present to the past. Financial analysts, on the other hand, are assigned to either a

product line or business unit. They help management set up profit objectives, analyze current

unit results, and anticipate future financial performance. Over time, financial analysts and staff

accountants eventually specialize in one of the areas described below.

Accounting

General accountants are responsible for producing all of the financial records a corporation uses

to track its progress internally and to meet government regulations. Accountants gather all the

information needed to compute a company's balance sheet, profit and loss statements, and

income statements. They also track the corporate budget, cash flow, and pay all the bills.

Treasury

The treasury department is responsible for all of a company's financing and investing activities.

This department works with investment bankers who help the corporation raise capital with stock

or bond sales or expand through mergers and acquisitions. Treasury also manages the pension

fund and the corporation's investments in other companies. The department also handles risk

management, making sure that the right steps are taken to safeguard corporate assets by using

insurance policies or currency hedges.

Corporate Development and Strategic Planning

Corporate development involves both corporate finance and business development. Finance

experts in corporate development study acquisition targets, investment options, and licensing

deals. Often they assess the best firms to buy or invest in, such as pre-IPO cutting-edge

technology companies with complementary products that could either extend the company's

product line or mitigate competition.



Divisional Financial Services

In this area, you work with each division's business team to prepare financial plans, make

forecasts, and compare actual financial results to forecasts. You may also evaluate the financial

consequences of alternative strategies. Responsibilities include everything from analyzing new

business opportunities to restructuring a business or developing a capital spending program. The

primary concerns are to find better ways of using company assets, reduce costs, and research

better methods of forecasting. Financial services groups evaluate the risks versus potential return

of any course of action and develop recommendations so that managers can pick the most

profitable strategies, depending on their goals.

Internal Audit

When most people think of an audit, they think of an outside audit—a large accounting firm like

Ernst & Young checking the corporate books on behalf of the shareholders. However, most large

companies have an internal audit group that regularly visits individual company branches and

checks the company's accounting systems. Internal auditors perform the investigative and

corrective work that ensures the external auditors don't find anything. The internal audit group

reviews the quality of the data, making sure it's both accurate and complete. They also evaluate

whether the corporate accounting procedures are effective and universally followed. Finally,

internal auditors introduce or revise procedures to improve efficiency and reduce costs.

Tax

Activities in this area involve administering taxes (i.e., paying taxes on time—or finding

loopholes to avoid paying them) and determining how to decrease the company's tax burden.

Responsibilities include working with attorneys on tax litigation, researching tax laws and

reporting requirements by nation (if the company is international), and keeping up with new

government rules and regulations. The tax department helps structure transactions, makes

recommendations on the timing of acquisitions or sales based on what else will be written off

that year, and can decide what corporate reporting structure reduces taxes—for example, creating

a wholly owned subsidiary versus having an internal division.

Source: WetFeet.com



Company Overviews

J.P. Morgan

o Overview: As a Summer Associate in Treasury & Securities Services (TSS),

you'll be placed on a product, segment or functional management team on projects

where you'll interact with leaders throughout the organization-gaining

management experience which will help you prepare for your future career in

TSS. This includes hands-on assignments in which you'll contribute to business

planning, product development, strategic planning, marketing positioning, and

budgeting.

o Industry: Financial Services

o Position: Summer Associate in TSS

ExxonMobil

o Overview: With total assets of approximately $200 billion and operations and/or

sales in about 200 countries, it is not surprising that sophisticated finance is a

critical element in the corporation’s ability to maintain its superior financial

strength and maximize shareholder value. ExxonMobil Treasurer’s seeks to attract

individuals with a strong record of academic achievement, first-rate quantitative

and analytical skills, and the drive to excel in a dynamic, high-performance

international business culture to help us develop and implement innovative

solutions to the financing challenges we face around the globe.

o Industry: Energy/Utilities

o Positions: Financial Analyst Intern – Treasury Group & Controller’s Group

General Motors: New York Treasurers Office

o Overview: General Motors’ Treasurer’s Office (GMTO), located in New York,

offers summer interns a broad array of job experiences in Corporate Finance.

Summer interns are placed in one of GMTO’s groups which include Global

Funding & Cash Management, Global Foreign Exchange & Commodities, Capital

Planning, Overseas Finance, Business Development, and Treasury Operations

Group, and will work closely with the group’s director, managers, and treasury

analysts in executing assigned projects.

o Industry: Automotive

o Position: Treasury Analyst

Johnson & Johnson

o Overview: An MBA LDP Intern will be responsible for completing project(s)

that deal with strategic business directions. These project(s) will provide exposure

to top management and multiple functional areas. Assignments can be in a variety



of areas such as sales and marketing finance, operations finance, or licensing and

acquisition analysis. Interns will be expected to demonstrate in depth

understanding of the critical issues, decision-making, project management and

data analysis skills

o Industry: Health Care

o Position: MBA Finance LDP Intern

Intel Corporation

o Overview: Be an integral part of the smart decisions that help Intel stay on top of

the technology industry Intel Corporation has exciting Operations Finance

internship. As a member of the Finance Intern team, you will have opportunities

to analyze business issues, recommend solutions, demonstrate your analytical and

problem solving abilities and work with peers and business partners to influence

business decisions that maximize shareholder value.

o Industry: Computer Hardware

o Position: MBA Finance Internship

Unilever

o Overview: Finance MBA Summer Interns will join one of the Finance areas

aligned with our key business processes (category management, sales, financial

planning and reporting, accounting operations or operations/ supply chain). The

Intern will interact across functional areas to lead a project with real impact to the

business. By providing an integrated financial perspective on the impact of

business decisions, the Intern makes recommendations and influences decisions

that maximize value for the business. Typical Intern projects have included

competitive analysis and benchmarking, product portfolio analysis and

optimization, business process redesign and have all involved working across

functions.

o Industry: Consumer Products

o Position: MBA Finance Internship

Other Companies that recruit at Fuqua (see CareerCompass for more information):

WR Grace

Procter & Gamble

Genentech

AT&T

BB&T

M&T Bank Corporation

Western & Southern Financial Group

IBM

Thomson Reuters

MeadWestvaco Corporation

Best Buy

Delta Airlines

American Airlines



Pre-Interview

Companies look for “Fit” & “Skills”

Genuine interest in company/position/industry Personal Story… the ―Why‖

o Networking, Informational Interviews, Attend Events

Excellent Analytical & Organizational skills

o Quantitative Problem Solving – Finance & Accounting

o Excel & Database – Modeling & Data Analysis

o Project Management – Teamwork & Cross-Functional

o Initiative – Go-Getters & Risk Taking

Managerial / Leadership Potential

Finance / Industry experience a plus…

Every company is different when it comes to technical and analytical skills, but FIT is

critical!!!

Corporate Finance Interviews

Interview Process

1st Round

o Behavioral

o Situational & Case Interviews

o Current Events

o Technical

2nd

/ Final Round

o Networking + Senior Management Exposure

o All of the Above

Interview Basics

A quick review of corporate finance interview basics… most companies conduct a standard ―fit‖

interview. The majority will not be extremely quantitative (especially first rounds) but be

prepared with financial concepts and strategies anyway.

1. Company strategy: Be familiar with the company’s business model and what makes the

company stand out from its competitors. Research companies from their websites, annual

reports, Lexis/Nexus, Bloomberg, WSJ, and industry publications.



2. Industry analysis: Research current market trends affecting the industry and know what

role its competitors play within it.

3. Job/Position: Understand how finance is organized within the company. Are you

interviewing with a treasury group or corporate control? Would you be working for a

central finance organization or for a business unit?

4. Finance questions: Know how to value a project. Memorize NPV, IRR, EVA definitions,

differences, downfalls, and how these measures are used to determine the viability of a

project. (see list of technical interview questions below)

5. Sample interview questions:

Walk me through your resume. Know your resume inside and out. Interviewers

will ask most about bullet points.

Tell me about yourself

How have you led a cross-functional team to bring about positive change/ to

overcome significant challenges? (Have two examples)

Give me an example when you have demonstrated leadership. (Have one work-

related and one school related)

What accomplishments are you most proud of?

What are your strengths and weaknesses?

Why should we hire you?

Convince me you want to work in the (_________) industry

Give examples of how you analyzed a complex problem. What was the result?

Be prepared for simple case questions. Interviewers will present a situation and ask you what

they should do. Remember to provide the STRATEGY behind your decision as well as your

finance answer. The company wants more than a number cruncher; answer all implications of the

project.

Corporate Finance Technical Interview Questions

General Finance

1. What could a company do with excess cash on the balance sheet?

2. What’s the difference between IRR, NPV and Payback?

3. What are the impacts on earnings if a company builds a new factory using debt?

operating lease? capital lease? cash?

4. Why would a company repurchase its own stock? What signals (positive & negative)

does this send to the market?

5. When would you take a project with a negative NPV?



6. What is Sarbanes Oxley and what are the implications?

7. Why might a company choose debt over equity financing, or vice versa?

8. What are the ways a company can manipulate cash flows?

9. What are the primary causes of bankruptcy and what are the options available to a

company?

10. Let’s say that I have a bond with a 5% coupon. What happens to the market price when

the prevailing interest rates rise to 8%? How are the coupons affected?

11. Which corporate bond would have a higher coupon, an AAA or a BBB? What are the

annual payments received by the owner of a five year zero coupon bond?

12. Would you rather have $___ today or $1 a day for the rest of your life? How would you

go about valuing this amount?

13. What happens to a company’s equity when assets rise $1 million and liabilities fall $2

million?

14. What does it mean when cash flow from operations on a company’s cash flow statement

is negative? Is this bad news? If so, is it dangerous?

15. Suppose that you constructed a pro forma balance sheet for a company and the estimate

for external funding required was negative. How would you interpret this result?

16. How will a decrease in financial leverage affect a company’s cost of equity capital, if at

all? How will it affect a company’s equity beta?

17. If you want to assess the health of a company and you could choose between looking at 3

years of income statements or 3 years of balance sheets, which would you choose and

why?

18. What are some reasons why a company might tap the high yield market?

19. Finance managers today face many challenges in governance and reporting as a result of

recent legislation and events. Given what you know about these recent news events and

legislation, what difficulties do you think finance managers are dealing with today?

Valuation

20. What are the different ways to value a company?

21. Walk me through a DCF valuation. What is free cash flow and how is it calculated? What

would you use for a discount rate? How do you determine the terminal value?

22. How do you calculate WACC?

23. What is the formula for CAPM?

24. What is beta? How and why do you unlever a beta?

25. What is the current market risk premium? What is the current risk-free rate?

26. What kinds of multiples do you think are most important when valuing a company and

why? What are some reasonable ranges for these multiples?

27. What makes a good comparable company for valuation purposes?

28. What is the difference between enterprise value and equity value?



29. Why should the fair market value of a company be the higher of its liquidation value and

its going-concern value?

30. What is an LBO? Why leverage up a firm?

31. Let’s say I want to value a natural gas pipeline, how would you suggest I do that? What

do you think is the appropriate risk free rate to use with this pipeline? How would you

finance buying a pipeline like this?

32. As a manufacturing firm, assume you are producing at full capacity. Marketing comes to

you with a great new product idea and says the firm needs to begin producing it. What

analysis would you do, and what things would you look at in response to marketing’s

request?

Accounting

33. Walk me through a typical income statement, balance sheet or cash flow statement.

Discuss the inter-relationships between the income statement, balance sheet and cash

flow statement.

34. What is EBITDA? Why is it important?

35. What is goodwill? How does it affect net income?

36. What is the difference between cash and accrual accounting?

37. If Accounts Receivable increases during the period, how does that impact cash?

38. What is a 10K? What is a 10Q?

39. What are deferred taxes? How do they arise?

40. If I under-depreciated by $3,000, walk me through how that would affect the financial

statements.

41. Which of the three financial reporting statements (balance sheet, income statement,

statement of cash flows) is most important and why do you believe this is so?

42. Assume that you have a significant amount of inventory on hand. What control measures

could you put in place to ensure employees aren’t running off with your inventory?

43. How would you go about forecasting balance sheet accounts in the future—specifically

inventory, accounts receivable, and accounts payable?

Case Questions

44. ―There are three ways to account for oil exploration costs: The FIRST is to write-off all

exploration costs as incurred, the SECOND is to capitalize successful explorations and

write off the rest, and the THIRD is to capitalize all exploration costs. Which one results

in the lowest Net Income, the highest Book Value, and the highest Cash Flow?‖

45. Your company’s weighted-average cost of capital is 12 percent. You believe the

company should make a particular investment, but its internal rate of return is only 10

percent. What logical arguments would you use to convince your boss to make the

investment despite its low return? Is it possible that making investments with returns

below capital costs will create value? If so, how?



International Finance

Dear fellow Fuqua student,

This section of the resource guide serves students who are specifically interested in exploring

Finance outside the U.S. The various job functions are mainly within Investment Banking, Sales

& Trading, Private Banking, and Corporate Finance.

I am the International Finance Director for the Finance Club, and will be your key contact for

advice on international recruitment, especially in Asia.

A little about myself – Prior to attending Fuqua, I spent 3 years on the Equity Sales Trading desk

in Macquarie Securities and in the Development Bank of Singapore (DBS). Prior to the Capital

Markets world, I started my career in the area of market intelligence consulting work with

Synovate Business Consulting.

Over the summer of 2010, I interned at Barclays Capital in Singapore, on their Commodities, and

FX Sales desk.

In 2010, we had a very successful year for international recruitment in Hong Kong, Singapore,

Bangkok, Tokyo and Mumbai. We hope this information guides you through the hectic Fall 1

semester, and arm you with the know-how to make a positive impact with your prospective

employers.

Should you need anything during the recruiting season, please feel free to contact me. I look

forward to expanding the Fuqua brand internationally with you as the years pass!


Lawrence Pang

International Finance Director



Important points to note:

Despite differences in the interview process between U.S recruitment and internationally, it

would be wise to be very conscious of the following:

1) It is extremely time-consuming to be interviewing for both U.S. and International

finance jobs. Focus on one geographical region at a time. I cannot stress this enough, as it

is crucial to be FOCUSED on the geographical region AND the function of Finance (eg.

S&T, I-Banking, etc) you intend to head towards.

2) Interviews for Asia-based finance jobs (eg. S&T, I-Banking, etc) have a tendency to

focus more on your prior career before Fuqua. This means that the resume is the first

point of contact between you and the recruiter – not informational interviews.

Therefore, if you have the finance experience, show it! And if you do not have prior

Finance experience, fret not. Showcase in your resume your enthusiasm for Finance-

related subjects; enroll in the CFA; take up a leadership position in the various Finance

clubs in Fuqua, etc. The main goal is to show in your resume you are working towards

Finance, and that your previous work experience has Finance-related and analytical

aspects.

3) Keep in close touch with your friends/contacts from other MBA schools in the U.S,

especially the B-schools such as Columbia/NYU, Wharton, Harvard/MIT,

Chicago/Kellogg. These schools are located in the major cities: NY, Pennsylvania,

Boston, Chicago, and international offices of bulge bracket banks hold their road

shows/corporate presentations in these cities. They specifically invite these schools,

though are also welcoming to Fuqua students, so long as you register. In other words, you

need to be part of the grapevine!

For example, Deutsche Asia holds its roadshow in mid-Oct, Goldman Sachs Asia in Nov.

Most of these bulge bracket firms’ road shows occur during the period of Oct-Nov.

Again, be FOCUSED on which of these international road shows you want to attend, as it

will clash with U.S.-based informational interviews, and other corporate presentations.

4) SHARE. Keep the Fuqua teamwork brand alive, by helping your peers. This means

having each of you spread the word around when you know of an international

recruitment occurring outside of Fuqua.

Remember, there is strength in numbers. Lots of recruitment info does not go through one

person only – it’s a collective effort on the part of the students to bring Fuqua to the front

of these recruiters.



How is the recruitment different outside of the U.S?

Timeline is different

Whereas Week-on-Wall-Street starts in mid-Oct, Week-in-Hong-Kong occurs during the

Thanksgiving period of late-November. The online application deadline outside the U.S. is

generally in end-Nov to early-Dec. Bear this in mind as there is no recourse once you miss the

online application deadline.

Note that the bulge bracket banks request you apply for only ONE geographical region, for ONE

job function. (eg. Choose ONE region amongst U.S, Europe, and Asia – for say, S&T).

Therefore, as mentioned, the onus is on you to be FOCUSED in your application.

The recruitment for Asia/Europe starts later than in the U.S. (compared to U.S. timeline in pg 11)

Few informational interviews

Generally, finance recruitment outside the U.S. does not involve informational interviews. As the

Asia/Europe offices of global bulge-bracket banks do not come directly to Fuqua to recruit, these

offices do not provide private face-to-face informational interviews. What occurs are road shows

/ corporate presentations in major U.S. cities in Oct-Nov, where the Asia/Europe offices send

representatives to meet with prospective students.

During such road shows, the informational interview takes on another form, where it is a group

setting, with students from other B-schools clustered with you. Therefore, it is imperative to ask

the right questions which the interviewer would take positive note of. You might be meeting with

them again if you’re selected for interviews, which occur in Jan-Feb.

My experience to gain informational interviews was one of reaching out to Asia-based alums,

and speaking to them on the phone at their convenience. This occurred during the period of late



Fall I and early Fall II. Be mindful that it’s generally during the daytime in Asia, when alums

would speak with you, so be prepared to stay up late in the U.S. to speak with them. It’s

definitely worth the time and effort.

Questions posed during international recruitment Interviews

Lots of examples of questions specific to the U.S. have been posed in the earlier sections of this

Resource Guide. Take time to read through them, especially in the JOB FUNCTION you have

targeted (eg. I-banking, S&T, Research).

These questions will enable you to deliver a CLEAR picture you want to portray to the

international interviewer. At the end of the day, you must showcase that you have a good attitude

to learn and the wherewithal to undertake pressure.

Here are a few questions gleaned from the Class of 2011, who were interviewing with Asia-

based bulge bracket banks. These questions range across recruitment for I-banking, S&T, and

Research. Kindly note they are only examples of what we experienced in the interviews, and are

not to be viewed as all-embracing questions to be memorized; there are many other ways these

questions may be asked.

1. Why I-banking, and not S&T?

2. Why S&T, and not I-banking?

3. Why (location)? (eg. Hong Kong, Tokyo, etc)

4. We have only 5 spots. Why YOU over the 500 resumes from top ten MBA programs like

HBS, Wharton, Stanford, etc?

5. What do you think about the current market?

6. Pitch me a stock. Why this stock, and not its peers?

7. Why did you leave your previous career and go to Fuqua?

8. Why did you go to (your undergrad college)? What made you start your career in (eg.

Marketing) before heading to Fuqua?

9. How will you use your strengths here at (eg. Barclays, Goldman Sachs) for Sales? Or

Research?

10. Which firms have you had interviews with? What are the results?



2010: International Internships

The Class of 2011 had a successful year for international finance recruitment. The following are

classmates whom you may seek out to leverage on their experience. The bulk of Asia-based

recruitment was in Hong Kong.

Work closely with the CMC: Meg Flourney

Meg Flourney has been very supportive of international hirings for Fuqua students, and is the

designated counselor for China. She is in contact with HR personnel, especially for Hong Kong

and China.

If you know of other contacts which could help, please be mindful to share with Meg. This

allows for added clout from Fuqua to enable a deeper connection between you and the

international company you are targeting.

Let’s bring Fuqua to greater heights in the international arena.

Banks Function Hong Kong Singapore Tokyo Bangkok Mumbai

Barclays IBD Binjie Li (Icy) Chaniporn Chitvarakorn (Ni) Amit Mehra

S&T Lawrence Pang Takashi Kida

Credit Suisse Research Zhang Zidong

IBD Xiong Yuan (Ivy)

BoA-ML Research Devanjan Sinha

Citigroup S&T Phillip King

finance guide

Documents