Investment Banking Practice Questions (IB)

Investment banking interview prep with 3,095 practice questions across valuation (DCF, comps, precedents), M&A mechanics, LBO fundamentals, accounting linkages, and the markets awareness layer — the exact technical families asked in analyst and associate interviews at bulge brackets and elite boutiques.

Start practicing free — 3,095 Investment Banking questions with full explanations →

Investment Banking practice by topic

How do I prepare for an investment banking interview?

Two tracks: technicals and story. For technicals, drill valuation, accounting linkages, M&A accretion/dilution, and LBO intuition until answers are automatic — KomFi gives you 3,095 interview-grade questions with full explanations, plus flashcards for formulas. For story, script your "why banking" and deal discussion, then pressure-test them.

How do I learn investment banking?

Learn the work, not the mystique: valuation methods, transaction mechanics, and financial statement fluency. Ten focused questions a day with honest feedback outperforms passively reading guides — that is exactly the rep structure KomFi is built on.

What technical questions are asked in investment banking interviews?

The core families: walk me through a DCF; how do the three statements link; accretion/dilution math; what makes a good LBO candidate; enterprise vs equity value; and valuation multiples — all covered in the bank with trap-aware explanations.

How long does it take to prepare for IB interviews?

From a standing start, 4–8 weeks of daily drilling covers technicals for analyst-level interviews. The differentiator is consistency: a daily 10-question rep with review of every miss.

Free Investment Banking practice questions

  1. A target company is being acquired for $60.00 per share. Its… — What is the control premium being paid in this
  2. Which scenario provides a higher IRR?
  3. What is the Multiple on Invested Capital (MOIC)?
  4. Which valuation methodology would likely produce the 'floor' valuation for a mature industrial company in a st
  5. Which buyer is generally able to pay a higher premium in an auction for a mature industrial company, and why?
  6. Which of the following changes, held in isolation, would most likely achieve this?
  7. A company has $100 million of Preferred Stock with a 6% divi… — When calculating Enterprise Value, why is this
  8. If a company has an Unlevered Free Cash Flow (UFCF) of $500 million in Year 5, a WACC of 10.0%, and a perpetui
  9. When calculating the WACC, why is the cost of debt multiplied by (1 - t)?
  10. What is the primary impact on the LBO returns?
  11. Which component of an LBO's return is considered the 'least predictable' and is often set to zero in conservat
  12. What is its Enterprise Value?
  13. An analyst is calculating the Terminal Value of a company in… — If the WACC is 10.0%, what is the Present Valu
  14. If a company's Net Debt is negative, what is the relationship between its Equity Value and Enterprise Value?
  15. In a merger model, the 'Pro Forma' share count is calculated as:
  16. What is the control premium?
  17. Why is EBITDA often used as the denominator for Enterprise Value multiples, rather than Net Income?
  18. If the company generates $12.0 million in Net Income, what is its Return on Equity (ROE)?
  19. Which of the following multiples would be most useful for a capital-structure-neutral comparison?
  20. An acquirer with a current P/E multiple of 20.0x is consider… — Without considering synergies, will this deal
  21. What is the Multiple on Invested Capital (MOIC)?
  22. What is the Multiple on Invested Capital (MOIC)?
  23. What is the 3-year Compound Annual Growth Rate (CAGR)?
  24. If the debt remains $600 million at exit, what is the MOIC?
  25. What is the Multiple on Invested Capital (MOIC)?

Investment Banking glossary — every key term defined →

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