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Happy Monday, future bankers!

Buckle up and make the most of your week. It’s going to be a good one.

🚀 Let’s get into it.

🔢 Technical Question

“Is it possible for a company to have a negative Enterprise Value? What would that mean?”

While it's technically possible for a company to have a negative Enterprise Value (EV), it's a rare and typically concerning situation. Here's how you can answer the question in an investment banking interview:

1. Start with acknowledging the possibility:

"Yes, technically a company could have a negative Enterprise Value. This occurs when the total value of its debt and minority interest exceeds its market capitalization and cash."

2. Explain the underlying situation:

"This scenario usually suggests significant financial distress. The company likely has accumulated substantial debt, while its market valuation has plummeted due to poor performance or investor pessimism. Additionally, a large non-controlling interest can amplify the effect, driving EV further into negative territory."

3. Discuss the implications:

"A negative EV has several implications:

• Financial vulnerability: The company faces immense stress servicing its debt obligations, with a high risk of default or restructuring.

• Limited investment appeal: Investors likely perceive the company as a risky bet, discouraging investment and further depressing the stock price.

• Potential restructuring scenarios: With such a fragile financial state, the company might consider bankruptcy, debt restructuring, or even asset sales to survive."

4. Offer additional nuance:

"However, it's important to analyze the context carefully. Certain situations like rapid industry shifts or temporary accounting adjustments might temporarily push a healthy company into negative EV. But in most cases, it signifies significant financial hardship."

🗣 Behavioral Question

"Tell me about your work style."

Here's how you can approach the prompt:

1. Showcase adaptability and growth mindset:

• Emphasize your ability to learn quickly and thrive in a fast-paced environment. Mention experiences where you tackled new tasks or adapted to changing priorities.

• Use keywords like "proactive," "flexible," and "eager to learn."

2. Demonstrate strong work ethic and dedication:

• Highlight your willingness to put in the hours and go the extra mile. Mention instances where you demonstrated initiative or perseverance to achieve a goal.

• Use words like "hard-working," "dedicated," and "driven."

3. Focus on teamwork and collaboration:

• Emphasize your ability to work effectively with others in a team setting. Share examples where you contributed to a successful team project or communicated effectively with colleagues.

• Use terms like "team player," "collaborative," and "communication skills."

4. Tailor your response to the specific role:

• Research the bank and the specific position you're applying for. Mention skills and experiences relevant to the job requirements.

• Show enthusiasm for the role and the type of work the department does.

5. Example response:

"My work style is characterized by adaptability and a strong desire to learn. I thrive in fast-paced environments and am always eager to take on new challenges. During my internship at [Company name], I quickly learned how to analyze financial data and build financial models. I also demonstrated my teamwork skills by contributing effectively to a team project that identified potential investment opportunities in the [Industry] sector. I'm a hard-working individual with a strong work ethic, and I'm confident I can excel in a demanding environment like yours. I'm particularly excited about [Something specific about the role or the bank]."

🗞 Industry News

Losing $30 billion in a month 🔥💰

Elon Musk's wealth has plummeted $30 billion this year as Tesla's stock price tumbles. Once holding a commanding lead over other billionaires, his fortune now sits just $15 billion ahead of Jeff Bezos and barely $71 billion above Warren Buffett. This decline stems from Tesla's missed projections, muted growth outlook, and Musk's own focus on increasing control over the company.

Despite the recent slump, Musk's fortune remains substantial. However, his grip on the top spot among the world's wealthiest is increasingly tenuous as other billionaires close the gap. The future of his and Tesla's financial prowess hinges on navigating a changing market and overcoming internal challenges.