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Marginal Costs and Marginal Revenue

In the last article, we talked extensively about supply and demand. We will now focus in on how supply and demand is related to costs and revenue, specifically marginal costs and marginal revenue. By understanding these important concepts, we can gain a better insight on how profit maximizing firms  behave

Investment Banking Resume Screening Process

Competitiveness for Investment Banking Resume Screening Having served on multiple recruiting committees where the fate of students was decided with the red pen of many a sleep deprived analyst, associate and VP, we can share what resumes that end up past the HR screen (including transcripts and cover letters) end up

Analyzing Financial Statements and Ratios

In the last article, we discussed the importance of understanding the three financial statements. In this article, we will make use of the numbers from the financial statements to analyze the underlying company. Vertical and Horizontal Analysis One important aspect of financial statements is that it allows analysts and management to compare

How to Answer “What Two Companies Do You Think Should Merge?”

This is an excellent investment banking interview question which shows that the interviewee thinks about corporate finance applications outside of theory. A lot of candidates have the technical interview questions rehearsed and have great answers about: Why investment banking? Can you work the hours? Are you really passionate about finance? And then after convincing you

Understanding the Three Financial Statements

A robust understanding the three financial statements is important for banking and asset management interviews. This post is meant to be a quick review for an interview, or a complement to your introduction to financial accounting course, which covers this material in much greater detail. The three financial statements that all

Interview with: Investment Banking Summer Analyst

This is an interview conducted with a summer analyst at a major bank that received a return offer but will be joining another investment bank How did you get hired as a summer investment banking analyst? I attended a target school and went through the regular on-cycle recruiting campaign. There is an

Option Contracts and Put Call Parity

An option contract is a financial instrument that gives the buyer the right, or option to buy or sell a stock on a future date, at a predetermined price. The party that writes, or sells the option has the obligation to fulfill the terms of the contract. There are two