Deutsche Bank first round, interview 1



(Two on one) Deutsche Bank 1.1 (Two on one)

Introduce yourself
[Brief run through of work experience] Gorilla Park was interesting because I was there just as things were beginning to go downhill

Is it still around?
Yes, but running on skeleton staff

How long were you there?
One week

Why did you apply there?
Seemed a cool thing to do at the time. Also applied to IBM, IXL.

On what basis did you apply - did you know anyone there?
No, submitted CV & cover letter, and went for interview. It was for a school work experience programme, but I organised it myself.

Did you do any financial modelling?
No

What would you say we do?
Advise on who to buy/merge with, how to raise financing, where to invest money. You're an intermediary between those people/institutions who have money, and those that need it.

What skills are required?
Numeracy, pitching/presentation skills, proactivity, quick thinking, attention to detail.

Do you know excel?
Yes, but not the way you guys know it. I have heard you described as 'Excel monkeys'.

Do you use a mouse?
At the moment yes, but I wouldn't expect to continue doing so.

I have a cube that is 10 by 10 by 10. I take off the top. How many are left [time is critical]?
1000 - 100 = 900

Now I take of an entire layer instead
That makes an 8 by 8 by 8 -> 8^3 = 64 * 8. 64 * 10 = 640. 64 * 2 = 128. 640 - 128 = 512

Excellent. Why did you apply for the Tech Media and Telco sector?
Because I think there is value in tech/telecoms, and I think they can improve quality of life.

How do newspapers earn money?
.....

How would you start a paper, what sector?
Not any hard hit sector because success/failure of paper depends on success/failure of industry.

Why is BSkyB successful, yet Carlton/Granada not?
Ahhh. Advertising. Advertising revenues have dropped, but Sky earns from subscriptions too (because it has a lot of bandwidth which carries specialist channels for which people are willing to pay a premium). In good times people pay for it because they have lots of money so they may as well. In bad times many people are unemployed and thus have nothing to do but watch 400 different channels.

How do you value companies?
DCF, comparable companies

DCF - where does rate come from? Why different rates for an IT startup and Daimler Crysler?
Risk

Comparables - why different P/E for French/UK company of same size in same sector, same growth prospects same market (Europe)?
Don't know

Do you know what EBITDA stands for?
Earnings Before Interest Taxes Depreciation and Amortization

Yes and that eliminates most of the differences between two companies caused by interest rate, tax rate, and accounting rule differences.

How is your French?
I am just learning, and don't know much at the moment. Doing it for kicks at uni, and because it is useful.

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