Financial Analyst Assistant Interview Questions
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Scenario Questions
1. Scenario: A company wants to invest in a new project that costs $500,000. The project is expected to generate $75,000 annually for the next 10 years. What is the payback period for this investment?
Candidate Answer: The payback period for this investment is 6.67 years.
2. Scenario: A company has an outstanding loan of $500,000 with a 5% interest rate. What is the interest expense for the year?
Candidate Answer: The interest expense for the year is $25,000.
3. Scenario: A company’s net income for the year was $500,000. The total assets it owns are worth $5,000,000. What is the return on assets for the company?
Candidate Answer: The return on assets for the company is 10%.
4. Scenario: A company wants to diversify its portfolio by investing in both stocks and bonds. It has $100,000 to invest and wants to allocate 70% to stocks and 30% to bonds. How much money will be invested in each?
Candidate Answer: $70,000 will be invested in stocks and $30,000 will be invested in bonds.
5. Scenario: A company has a debt-to-equity ratio of 2:1. It has total debt of $500,000. What is the company’s total equity?
Candidate Answer: The company’s total equity is $250,000.