Medium Investment Banking Practice Questions

192 free medium-difficulty Investment Banking questions, drawn live from KomFi's calibrated bank. The exam backbone: the difficulty band where most scoring happens.

1. While performing a DCF, an analyst observes that decreasing… — Which component is driving this sensitivity?
2. If the target has $60 million in net income, which structure is more accretive to the buyer's EPS?
3. If it issues $200 million in new equity to retire $200 million of debt, what happens to the WACC (assuming no
4. What is the MOIC and approximate IRR?
5. Which of the following would cause a company's Enterprise Value to remain unchanged while its Equity Value dec
6. If the capital structure is 40% debt and 60% equity, what is the WACC?
7. Which path is more appropriate?
8. Assuming no synergies and no transaction fees, will the deal be accretive or dilutive to AcquirerCo's EPS?
9. Which multiple is likely the most appropriate to use for valuation?
10. Ignoring synergies, will the acquisition be accretive or dilutive?
11. What is the primary purpose of a 'Lock-Up Period' following an IPO?
12. Which of the following is a 'Material Adverse Effect' (MAE) carve-out typically found in a merger agreement?
13. What is the Multiple on Invested Capital (MOIC) and the approximate Internal Rate of Return (IRR)?
14. A strategic acquirer is calculating the Present Value of syn… — What is the Terminal Value of these synergies
15. If EBITDA grows by 20% over the period and half of the initial debt is repaid, which factor contributes most t
16. A target company is trading at an EV/EBITDA multiple of 8.0x… — What is the most likely reason for this discre
17. Ignoring synergies and transaction D&A, is the deal accretive or dilutive?
18. What is the implied perpetuity growth rate (g)?
19. What is the impact on IRR and MOIC?
20. Where is the most reliable place to find the narrative of when deal rumors began?
21. If the marginal tax rate is 25%, what is the firm's Interest Coverage Ratio?
22. A $338(h)(10) election is made for a $400 million acquisition. The target's asset basis is $100 million. If th
23. Using the Perpetuity Growth Method (PGM) with mid-year convention, what is the Terminal Value (TV) at the end
24. What is the Multiple on Invested Capital (MOIC)?
25. A company recognizes $100.0 million in Deferred Revenue on i… — How does this impact the current year's EBITDA
26. If the buyer's share price drops from $100.00 to $80.00 between signing and closing, how does the value receiv
27. In the 'If-Converted' method for an in-the-money convertible bond, how are the interest expense and the share
28. What is the Multiple on Invested Capital (MOIC)?
29. If the initial equity investment was $500 million and the recap occurs in Year 2, how does this specifically i
30. Why might a 11.0x multiple be appropriate for a target with 14% margins and 8% growth?

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