Financial Interview Questions for MBA (Finance)/ B.com/ M.com etc on Cash Flow statement, IPO, Capital Budgeting, Derivatives, Indian Equity Market Here we are providing some of Financial Questions which are regularly asked in operational round for finance students such as MBA finance & B.com etc. So candidates who are looking for job in the financial field may prepare / practice below given questions.

Capital Budgeting:

• What is Cost of Capital? and How do you calculate WACC? Discuss with example.

• What is ARR?, What are “Terminal cashflows”, Between IRR and NPV which is a better tool.?

• What is huddle rate ? 18. Have you heard of “Discounted Payback Period Method” ?

• Capital rationing? (Firm has unlimited capital simply it can select all profitable projects. Limited Capital select a profitable project and invest.)

• What is capital structure ? What is Cost of Equity ? How to estimate cost of equity ?

• Capital structure: What is Cost of Debt ?, What is WACC ?, Why you want to analyse capital structure ? How its helps the company ?

Derivatives:

• What is short position & What is the meaning of Short Put.

• What is Long Put, What is Short Call & What is Long Call?

• What are in the money options ? What is intrinsic Value ?

IPO: Initial Public Offer

• What is firm commitment ? What is happens to the hares, when the IB cannot sell the shares in the issue ?

• What is reverse book building and when is that followed ? What is green shoe option ? Why the name Green shoe

Indian equity market:

• What is equity ? What is the difference between equity shares and preference shares.

• What is Open offer ? What is IPO ? Give me some name of depositories, Clearing houses etc.

• What is rights issue ? What if i dont have money to apply for this rights issue, then what happens ? What is arbitraging ?

• What are Stag Markets ? What are bear markets ?

Cash Flow Statement:

• Difference between cash flow statement and Funds flow statement. Why do we prepare cash flow statement separately ?

• What is the meaning of “Cash Profit”, What is the difference between cash profit and accounting profit ?

• In indirect method, why do we deduct profit from the sale of fixed assets.

• Give some examples for operating activities, Give examples for financing activities and investment activities

• Interest paid by the company falls under which category ? Dividend payments to shareholders fall under which category ?

• Proforma of Cash flow statement and funds flow statement.

• Is there a situation where company reports profits in the income statement buy there may not any cash in the company ?

• How to calculate operating cash flows using indirect method ?

• Income tax payments fall under which category?

Note: For the below questions, Candidates can write their Answers in the Comment field. Thank you.