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Happy Tuesday, future bankers!

Hope everyone is doing well! Today we’re covering how you’d value an apple tree, a time you faced an ethical dilemma, and the strong jobs report.

🚀 Let’s get into it.

🔢 Technical Question

How would you go about valuing an apple tree?

There’s two main ways that you could go about valuing the apple tree:

1. Discounted Cash Flow (DCF): This method involves estimating the future cash flows that the apple tree would generate (i.e., revenue from selling apples minus any costs associated with maintaining the tree). These future cash flows are then ‘discounted’ back to their present value using a discount rate, which reflects the risk and time value of money.

2. Relative Valuation: This approach involves comparing the apple tree to similar assets that have recently been sold or are currently on the market. Key metrics used for comparison could include price per apple or price per yield.

By combining these two methods, you can arrive at a sound valuation for the apple tree. Remember, the DCF method gives you an intrinsic value based on the apple tree’s own characteristics, while the relative valuation provides a market-based value by comparing it to similar assets.

🗣 Behavioral Question

Tell me about a time where you faced an ethical dilemma.

Here are some best practices for responding to this question:

1. Choose a Real Scenario: Select a genuine instance where your ethics were tested. It could be a situation from your academic, professional, or personal life. The interviewer wants to understand how you handle ethical dilemmas.

2. Describe the Situation: Clearly explain the context and the challenge you faced. Be concise and stick to the facts.

3. Explain Your Thought Process: Discuss how you evaluated the situation. What were the ethical considerations? How did you weigh the pros and cons?

4. Discuss Your Actions: Detail the steps you took to address the situation. This will demonstrate your problem-solving skills and ethical judgment.

5. Reflect on the Outcome: Talk about the results of your actions. If the outcome was positive, explain why. If it was negative, discuss what you learned and how you would handle a similar situation differently in the future.

Remember, the goal is to demonstrate your ethical standards and decision-making process. Be honest and self-aware in your response. The interviewer is not just interested in the situation, but also in how you handled it and what you learned from it.

🗞 Industry News

💪 Jobs Data Shows Labor Market is Strong

The US labor market showed signs of resilience in February, with a slight uptick in job openings and hiring. The Bureau of Labor Statistics reported 8.76 million job openings at the end of February, a small increase from January’s 8.75 million. The Job Openings and Labor Turnover Survey (JOLTS) also indicated that 5.8 million hires were made during the month, up from January’s 5.7 million. The hiring rate also rose to 3.7% in February, from 3.6% in January.

Looking ahead, economists are closely watching for any shifts in hiring and quits rates, which are seen as key indicators of labor market trends. While some softening in the labor market could be on the horizon, the current data suggests continued strength. This robustness supports an economy that’s growing faster than expected, easing concerns about potential economic risks. The upcoming March jobs report is anticipated to show a drop in unemployment to 3.8%. Despite projections of a wage growth decline, the overall labor market narrative remains strong enough to alleviate any concerns about deterioration.

Read more about this story below.

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