Cash Flow Related Questions in Investment Banking & Private Equity Interviews

This page lists cash flow-related questions our students have encountered in Investment Banking & Private Equity Interviews since 2008.

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How do you capitalize R&D expenses?

Why is expensing R&D expense not a good practice from a DCF valuation perspective?

What is the difference between depreciation and amortization from a DCF valuation perspective?

How do you convert an operating asset into a capitalized asset?

How do you deal with operating leases when preparing cash flows for a DCF?

Does the choice of currency of cash flows matter when valuing an international firm?

What line items found in EBIT must you remove when preparing cash flows for a DCF?

When would you use levered FCF when valuing a company using the DCF method?

Why/When do you use unlevered FCF when valuing a company using the DCF method?

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Questions by Topic

– Cash Flow Questions
– Risk & Rates Questions
– Tax Questions
– Growth Questions
– Other Valuation Topics
– Terminal Value Questions
– Working Capital Questions

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