How can I access the question sets?

To access the question sets, you first need to sign up for a free PrepLounge account. With a free membership, you can view a selection of questions and try out the first sets.

Why are question sets important for my preparation?

The question sets bring together the most common topics asked in Investment Banking , Corporate Finance , and Private Equity interviews. This allows you to focus your practice on the areas interviewers test most frequently. They help you strengthen your fundamentals, internalize typical ways of thinking, and become more confident in delivering clear and structured answers.

How do the question sets differ from traditional case studies?

Case studies usually simulate complete business problems, while the question sets focus on highly targeted technical interview questions. They are shorter, more structured, and designed to test your technical knowledge efficiently. This makes them particularly useful for preparing for the technical rounds of finance interviews.

How can I best practice the question sets?

You can start by working through the question sets on your own to get an initial feel for the structure and logic of the questions. Afterwards, it’s best to practice them in a real interview environment with other members, you’ll find new invitations on the Meeting Board every day. If nothing suitable is available, you can use the Candidate Listing or post your own invitation. To take your preparation to the next level, you can also schedule coaching sessions with our experienced coaches who have helped many candidates secure their dream job offer. Our tip: Review the Finance Interview Basics beforehand to build a stronger foundation and deepen your overall understanding.

What is the difference between Beginner, Intermediate, and Advanced?

The difficulty levels help you gauge how deep the questions in each set go. Beginner sets cover foundational topics such as simple definitions or basic calculations, while intermediate and advanced sets focus on more complex concepts, modeling logic, and connections between financial metrics. This allows you to tailor your preparation to your current skill level.

How do I know if I answered a set correctly?

Each question in the set includes a dropdown with the complete solution path or a model answer. This allows you to check whether your reasoning, structure, and explanation align with what interviewers typically expect. However, we recommend not opening the solution too quickly – give yourself time to think and work through the question on your own first.

Are the question sets modeled after real finance interviews?

Yes, the sets are based on the types of technical questions typically asked in Investment Banking, Private Equity, Corporate Finance, and Audit interviews. They cover both theoretical concepts and short mini-cases that closely mirror real interview situations. The goal is to prepare you for the question style, depth, and expectations of actual interviewers.

What does the star rating under each set mean?

The star rating reflects how other users have evaluated the question set – including its quality, difficulty, and overall usefulness. It helps you gauge how challenging or helpful a set is compared to others on the platform. The higher the rating, the more valuable past candidates found it for their interview preparation.

Back to overview

Case by

PrepLounge

Enterprise & Equity Value Interview Questions for Finance

More information

Difficulty: Beginner

Interviewer-led

4.0

< 100 Ratings

Times solved: 300+

Valuation

This set of questions is designed to help you master the fundamentals of Enterprise Value (EV) and Equity Value. The questions start with basic concepts, such as the difference between EV and Equity Value, and progress to key topics like calculating EV, the impact of diluted shares, and understanding the Treasury Stock Method.

In total, walking through this set in an interview would take approximately 30 minutes, making up around 60% of a typical 45-minute interview. Below, you’ll find model answers for each question, along with tips for the interviewer on what to look for in candidate responses.

Practice makes the difference

Practicing alone helps – with a partner it’s even better. Solve this question set in a realistic mock interview.

What's the difference between Enterprise Value and Equity Value?

Show solution Hide solution

Why is it important to consider both Enterprise Value and Equity Value in an acquisition?

Show solution Hide solution

Is one more important in an acquistion than the other?

Show solution Hide solution

How is Enterprise Value determined?

Show solution Hide solution

How would you calculate Enterprise Value if the company has excess non-operating assets?

Show solution Hide solution

How do diluted shares affect the Enterprise Value?

Show solution Hide solution

Explain the Treasury Stock Method.

Show solution Hide solution

Practice Case: InnovateX Solutions

InnovateX Solutions has 200 shares outstanding at a share price of $20 each. It also has 15 stock options outstanding with an exercise price of $12 each. What is InnovateX Solutions’ fully diluted equity value?

Show solution Hide solution

Step 1: Calculate the Basic Equity Value by multiplying the current share price by the number of shares outstanding.

Calculation of the Basic Equity Value

Basic Equity Value = 200 shares * 20 dollars/share = 4,000 dollars

Step 2: Account for the dilutive effect of options.

15 stock options are in-the-money, meaning the exercise price of $12 is lower than the current share price of $20. Since these options are attractive to the option holders, they will likely be exercised. When these options are exercised, the company will issue 15 new shares to the option holders. These newly issued shares increase the total number of shares outstanding.

Step 3: Calculate the proceeds from exercising options.

Calculation of Proceeds from Options

When the options are exercised, InnovateX Solutions will receive $12 per option. The total proceeds from the exercise of these 15 options are:

Proceeds from Options = 15 options * 12 dollars/option = 180 dollars.

Step 4: Repurchase shares with the proceeds.

The company will use the $180 it received from exercising the options to repurchase shares at the current share price of $20.

Calculation of Shares Repurchased

Shares Repurchased = 180 dollars / 20 dollars/share = 9 shares

Step 5: Calculate the fully diluted share count.

Calculation of Fully Diluted Shares

The company originally had 200 shares outstanding, and after issuing 15 new shares and repurchasing 9 shares, the total fully diluted share count is:

Fully Diluted Shares = 200 original shares + 15 new shares − 9 repurchased shares = 206 fully diluted shares

Step 6: Calculate the fully diluted equity value.

Calculation of Fully Diluted Equity Value

Finally, the fully diluted equity value is calculated by multiplying the fully diluted shares by the current share price:

Fully Diluted Equity Value = 206 shares * 20 dollars/share = 4,120 dollars

The fully diluted equity value of InnovateX Solutions is $4,120. This takes into account the stock options and the repurchase of shares.

How does debt affect the calculation of Enterprise Value?

Show solution Hide solution

Practice This Question Set With Peers Who Are Currently Looking for Interview Partners.

All Meeting Slots

Do you have questions on this question set?

Ask our community and receive answers and tips directly from our experts.

Related Finance Interview Basics Articles

Technical Interviews

General Info

Whether you're aiming for Investment Banking, Private Equity, or Venture Capital, your path to a finance career usually involves a multi-stage and demanding selection process. Alongside online tests and questions about your personality and motivation, the technical interview is typically a central component. Technical questions can appear at different stages of the process. In many cases, there is a dedicated technical interview, which is often part of the final round or a Superday. Depending on the firm, technical elements might also be assessed earlier, such as during an initial video interview or screening call. In this article, we'll walk you through the key technical topics typically covered in finance interviews, the types of questions you can expect, and how to prepare effectively to impress your interviewers.

To the article

Compound Annual Growth Rate

Key Figures & Terms

The Compound Annual Growth Rate (CAGR) describes the average annual growth of a metric such as revenue, market size, user base, or investment over several years. It assumes that profits are reinvested and compounded each year, resulting in a steady growth rate over the entire period. Also known as the Annualized Growth Rate or Geometric Average Growth Rate, the CAGR provides a simple way to show how a metric has developed over time without being distorted by short-term fluctuations.

To the article

PESTEL Analysis

Business Frameworks

Whether it’s new markets, changing regulations, or technological developments, companies must continuously understand and assess their environment to identify risks and opportunities early on. This is exactly where business analysts and consultants come in: they help organizations spot market risks and opportunities at an early stage. To do this, they rely on analytical tools that systematically evaluate both internal factors and external influences. Among the most popular methods, alongside the SWOT analysis and Porter’s Five Forces, is the PESTEL analysis. While SWOT examines both internal and external factors, PESTEL zooms in on the external components. Thus, it offers more insights into the macro-environmental forces that create those opportunities and threats to help in strategic planning and informed decision-making.

To the article

High Yield Debt

Key Figures & Terms

Did you know that companies can raise money not only through bank loans or equity, but also through the capital market? One important way to do this is through corporate bonds. Investors lend money to a company, receive regular interest payments called coupons, and get their money back at maturity. Besides regular corporate bonds, there is another type called High Yield Debt, also known as Junk Bonds. These bonds offer higher interest rates because they are riskier for investors. For this reason, they are often used to finance large projects such as leveraged buyouts, growth investments, or restructurings. Let us now look at how High Yield Bonds work in more detail. 🔎

To the article

Leveraged Buyout Model (LBO)

Valuation Models

A Leveraged Buyout (LBO) Model is a popular financial analysis tool for private equity firms, typically built in Excel. It’s used to assess whether a company is worth acquiring primarily with debt. In an LBO, private equity firms or investors purchase a company by combining equity, or their money, with debt. The model projects the target company's financial performance, including revenue, expenses, and cash flow, post-acquisition to show how its cash flow will be used to service and pay down the large amount of debt taken on. The main purpose of building an LBO model is to determine the potential returns for the equity investors, like the private equity firm, by calculating metrics such as Internal Rate of Return (IRR) and Multiple on Invested Capital (MOIC) at the time of an eventual sale or exit. It also helps assess the company's ability to handle the debt burden.

To the article

Finance Interview Questions – Prepare for Your Finance Interview Like a Pro

Practice with our curated Finance Interview Question Sets and get ready for your upcoming interview in Corporate Finance, Investment Banking, or Private Equity.
Whether you are applying to an investment bank, a Big Four firm, or a corporate finance department, these questions will help you build confidence and master your finance interview skills.

A comprehensive selection of Finance Questions
Our collection covers the key areas of typical finance interviews – from Accounting, Financial Modelling, and Valuation to M&A transactions, Capital Markets, and Corporate Strategy.
The sets vary in difficulty, allowing you to train both fundamental and advanced concepts.
Many of the questions are based on real interview experiences from top firms such as Goldman Sachs, J.P. Morgan, Deloitte and PwC, giving you authentic insights into what to expect.

Practice alone or team up with other candidates, compare your answers, and refine your problem-solving approach.
Get fully prepared for your next Finance Interview with PrepLounge!