CIBC Interview Written Exam.

CIBC Interview Written E me about yourself - correct answer why IB - correct answer why cibc - correct answer what is ib - correct answer 3 financial statements and purposes - correct answer balance sheet (assets and liabilities) income statement (net income= revenues- expenses- cost of goods sold) statement of cash flows (inflows and outflows): shows net change in cash resulting from operating, investing, and financing activities how are the financial statements connected - correct answer Income statement has Net Income which is part of Retained Earnings under SE on the balance sheet. The cash from assets in the balance sheet are the results of the statement of cash flows. Capital expenditures go under investment activities in the statement of cash flows. equity value vs enterprise value - correct answer equity value is whats available to shareholders (market cap) enterprise value is whats available to stakeholders (equity plus debt minus cash) 3 valuations - correct answer 1. comparable company analysis: look at similar companies w similar qualities (same geo location, industry, target customer) and compare their PE, EPS, Price to book 2. precedent transactions (similar companies previous transactions) 3. DCF- intrinsic valuation method based on management transactions walk me through a DCF - correct answer "A DCF values a company based on the Present Value of its Cash Flows and the Present Value of its Terminal Value.