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Happy Saturday, future bankers!

Hope everyone is doing well and congrats on making it to the weekend! Today we’re covering liquidation value, a person from history that you admire, and SpaceX’s latest venture.

🚀 Let’s get into it.

🔢 Technical Question

What’s an example of a scenario where a company’s liquidation value would produce its highest valuation?

A scenario where a company’s liquidation value would produce its highest valuation typically involves a company that has significant tangible assets but is not able to generate sufficient profits from its operations.

For instance, consider a company that owns valuable real estate or machinery. If the company’s operations are not profitable, its going-concern value (the value of the company as an operating business) may be less than the value of its tangible assets. In such a case, the company’s highest valuation could be achieved through liquidation, where its assets are sold off individually.

This situation often arises in industries with high capital intensity but low profitability, such as manufacturing or mining. It can also occur when a company has been poorly managed and its assets are not being used effectively to generate profits.

However, it’s important to note that liquidation is usually seen as a last resort, as it often results in job losses and can have negative effects on the local economy and other stakeholders. Therefore, before proceeding with liquidation, other options such as restructuring or finding a buyer for the business as a going concern are usually explored.

🗣 Behavioral Question

If you could have dinner with any person from history, who would you choose? Why?

This question is a great opportunity to showcase your personality, interests, and knowledge beyond finance. Here are some best practices for responding:

1. Choose a Significant Figure: Select a historical figure who has made a significant impact in their field, whether it’s science, finance, arts, or any other area that you’re passionate about.

2. Explain Your Choice: Don’t just name the person. Explain why you chose them. What specific qualities or achievements do they have that you admire? How have they influenced your perspective or approach to life?

3. Connect to Personal Values or Experiences: If possible, connect your choice to your personal values or experiences. This makes your answer more personal and memorable.

4. Discuss What You Would Ask or Learn: Mention what topics you would want to discuss during the dinner or what insights you hope to gain from the person. This shows your curiosity and eagerness to learn.

Here’s an example response:

“I would choose to have dinner with Marie Curie. Her relentless pursuit of knowledge in the face of adversity has always inspired me. I admire her for not only being the first woman to win a Nobel Prize but also for being the only person to win the Nobel in two different sciences. I would love to learn more about her resilience, her approach to problem-solving, and her perspective on the importance of scientific discovery.”

Remember, there’s no “right” answer to this question. The interviewer wants to understand more about your interests and values, so be authentic in your response.

🗞 Industry News

🚀 SpaceX’s Latest Venture

SpaceX, the brainchild of Elon Musk, is venturing into a new frontier with a network of spy satellites. This top-secret project, known as Starshield, is being developed under a $1.8 billion contract with the National Reconnaissance Office (NRO). The NRO is the intelligence agency responsible for managing spy satellites. This collaboration is set to significantly enhance the U.S. government’s ability to spot potential targets anywhere on the globe, almost instantly.

The Starshield network is separate from Starlink, SpaceX’s commercial broadband constellation. The new network will consist of hundreds of satellites with Earth-imaging capabilities, operating in low orbits. This classified constellation of spy satellites is one of the U.S. government’s most coveted space capabilities, as it offers persistent, pervasive, and rapid coverage of activities on Earth. In essence, “No one can hide,” as one source put it. Despite some controversies surrounding Musk, this project underscores the deepening ties between SpaceX and national security agencies, and highlights the intensifying competition in space.

Read more about this story below.

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