Investment Banking Interview Prep

Duke MBA Finance Club

Duke MBA Finance Club Resource Guide 2010 – 2011

Duke MBA Finance Club Resource Guide

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Table of Contents 1. Letter from the Presidents 2. Resources a. Academic b. Finance Club c. On your Own d. What you can do now 3. Cover Letter and Resume 4. Best Practices 5. Function-Specific Overview and Guides a. Investment Banking b. Sales and Trading c. Private Wealth Management d. Corporate Finance


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Dear Finance Club Member, On behalf of the Duke MBA Finance Club, we would like to take this opportunity to welcome you to Fuqua. We are excited to serve as Co-Presidents of the Finance Club this year. There were a lot of great initiatives taken on by the Club over the last year and we hope to be able to build on these and make the Club even more valuable to both First Years (FYs) and Second Years (SYs) looking to start careers in finance. We have a terrific team of SYs on the Board of Directors who are eager to help you prepare for the recruiting season and to plan and organize great events from the Finance Symposium and Week on Wall Street trip to the bi-weekly Markets Discussions. This is the first year the Finance Club has put together a comprehensive guide detailing the finance recruiting process and ways FYs can get a head start with their preparation. There is a lot of very helpful information in this guide and much of it has been tailored specifically for the Fuqua recruiting experience. We hope that you will take some time this summer to review this guide and plan accordingly. Believe it or not, as soon as Term 1 starts, you will be bombarded with opportunities and will have much less time on your hands than you expect. As mentioned before, we have a great group of SYs on the Board of Directors and you should feel free to reach out to any and all of us should you have any questions along the way. We will have a number of events to help introduce everyone but remember to be proactive as well. Congratulations on joining Team Fuqua and we look forward to meeting you in Term 1. Best Regards & Good Luck, Lia and Chris Co-Presidents


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RESOURCES Academic Course Exemptions You will receive information about core course exemptions in August. There are typically 2 ways to exempt from a class: 1) place out based on prior course work/certification, 2) testing out through an exam in late August. If at all possible, exempt out of at least one core class. Doing so will allow you to take Global Financial Management during your first term, and will allow you to take Corporate Finance during Fall 2. Having two finance courses completed in time for interviews, while not critical, can be extremely helpful during the interview process. Concentrations Investment banking candidates typically aim to concentrate in corporate finance, investments, finance analysis or a combination thereof. These concentrations provide a solid framework for the finance-related themes and decisions faced in the real world. Of course, there is no requirement that you concentrate to earn your degree or gain entrance into the world of finance. Concentration in Finance (Corporate) This concentration is designed for the following career paths: Corporate Finance, Venture Capital & Real Estate, and International Finance. Students should note that electives may have pre-requisite requirements. In addition, not all finance electives are offered each year. Both of the following courses are required: 

FINANCE 351 - Corporate Finance, FINANCE 352 - Investment

Choose one of the following courses: 

ACCOUNTG 342 - Corporate Financial Reporting, ACCOUNTG 441 - Financial Statement Analysis, ACCOUNTG 442 - Valuation & Fundamental Analysis


DECISION 312 - Decision Models, DECISION 410 - Decision Analysis

Choose two courses from the following set of finance electives:


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FINANCE 356 - Entrepreneurial Finance, FINANCE 451 - Advance Corporate Finance, FINANCE 452 - International Corporate Finance, FINANCE 455 - Corporate Restructuring, FINANCE 456 - Emerging Markets, FINANCE 457 - Venture Capital & Private Equity, FINANCE 458 - Raising Capital: Financial Instruments, Institutions & Strategy, FINANCE 491 - Advanced Topics in Finance

Concentration in Finance (Investment) This concentration is designed for the following career paths: Banking, Investment Management, Research and Sales & Trading. Both of the following courses are required: 

FINANCE 351 - Corporate Finance, FINANCE 352 - Investment


ACCOUNTG 441 - Financial Statement Analysis, ACCOUNTG 442 - Valuation & Fundamental Analysis


MGRECON 301 - Global Economic Environment of the Firm, DECISION 312 Decision Models, DECISION 411 - Forecasting

Choose two courses from the following set of finance electives: 

FINANCE 353 – Derivatives, FINANCE 450 - Fixed Income Securities and Risk Management, FINANCE 453 - Global Asset Allocation & Stock Selection, FINANCE 454 - Financial Engineering, FINANCE 458 - Raising Capital: Financial Instruments, Institutions & Strategy, FINANCE 491 - Quantitative Finance, FINANCE 491 Advanced Topics in Finance

Dual Finance Concentration Option Students wishing to obtain a dual concentration in Finance are required to complete a total of ten courses which are broken down as follows: 1. take the two required courses for the two different Finance concentrations (FINANCE 351 and 352) 2. take one of the following (ACCOUNTG 342, 441 or 442) 3. take one of the following (DECISION 312, 410, 411 or MGRECON 301) Duke MBA Finance Club Resource Guide

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4. take two finance electives from the approved list of Corporate Finance elective courses 5. take two finance electives from the approved list of Investment Finance elective courses 6. take two additional finance electives from either the Corporate Finance or Investment Finance elective sets Note that FINANCE 458 and FINANCE 491 (Advanced Topics in Finance) may count toward either the corporate finance or investments category but not toward both. Financial Analysis The Concentration in Financial Analysis is intended to provide skills and subject matter knowledge that will prepare students for careers that use the analysis of accounting numbers to support business decisions, such as consulting (e.g., strategic consulting, litigation support), equity analysis (sell-side or buy-side analysis; portfolio management), commercial banking, investment banking, financial positions in corporations (including in-house acquisitions activities). The accounting courses in the concentration will provide a solid foundation for preparation of pro forma financial statements, reading and analyzing financial reports, analysis of cost drivers and costs (e.g., separation of fixed from variable costs), and valuation techniques. The non-accounting courses augment students’ accounting knowledge with insight into the drivers of profitability within and across industries (competitive analysis; intellectual capital and competitive strategy), better ability to manipulate and analyze financial data (forecasting; information management), and deeper understanding of capital structure and restructuring events that change both asset compositions (e.g., via mergers or spin offs) and capital structures (corporate finance; corporate restructuring). Coursework The following two electives are required: 

ACCOUNTG 441 - Financial Statement Analysis, ACCOUNTG 442 - Valuation and Fundamental Analysis

Choose one of the following electives: 

ACCOUNTG 341 - Managerial Accounting or ACCOUNTG 491 - Management Control and Financial Reporting

Choose one of the following electives: 

ACCOUNTG 342 - Corporate Financial Reporting or ACCOUNTG 440 - Accounting for Mergers and Acquisitions or ACCOUNTG 448 - Taxation and Global Management Decisions


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Choose two of the following electives: 

DECISION 483 - Information Management, DECISION 411 – Forecasting, FINANCE 351 - Corporate Finance, FINANCE 455 - Corporate Restructuring, STRATEGY 339 Intellectual Capital and Competitive Strategy, MARKETNG 460 - Product Management, MGRECON 431 - Competitive Analysis

Non-Finance Classes It is worth your while to pursue any class you think will make you a better person and a better finance professional. For instance, students may take up to two classes outside of Fuqua during their business school career; the law school has a variety of popular and relevant courses on M&A, venture capital, private equity, securitization and securities law. Finance Club Resources Finance Symposium & Finance Club Education Series These are helpful resources for you to navigate the recruiting process and prepare yourself to jump right in. The Finance Symposium is an event that brings in finance industry professionals from Wall Street and Corporate America to discuss the most pressing issues shaping the industry. See the Timeline for additional details. Market Discussions Attending Finance Club market discussions should provide a good foundation for the marketbased interview questions. Look out for announcements from the Club regarding topics and meeting times. Second Years Mentors You will be paired with two second years (a Career Fellow and a Finance Club Fellow) to assist you during recruiting. Career Fellows are assigned by the school and come from a variety of backgrounds. The Finance Club Fellow will be assigned through the Finance Club and will be a SY student pursuing the career path in your area of interest. These mentors went through the process one year ago, and are integrally familiar with best practices. They are your best resource for any questions. Training the Street Several times over the course of the year Training the Street will visit Fuqua and teach relevant principles of finance that are very helpful in preparing for interviews and internships. Previous


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topics have included Valuation, DCF modeling, and M&A and LBO modeling. Look out for announcements from the Club. Finance Club Website Visit the club’s website (http://dukembafinanceclub.com/) and set up a login name and password. This will give you access to a wealth of career advice and interview preparation materials as well as announcements about upcoming Finance Club events.

On Your Own Read! In August, Fuqua will send out information regarding a discount subscription for the Wall Street Journal. Definitely take advantage of this offer. Reading the paper daily, and keeping up to date with the market and the financial news will be a huge asset as you go through the interview process. Additional resources are the Economist (which has a student subscription rate), Bloomberg Magazine, Barron’s, The Gartman Letter, The Financial Times (including FT Alphaville). Bloomberg, Capital IQ The library offers access to Bloomberg and Capital IQ. Follow the directions at the circulation desk to sign up for your account for each service. In addition, this year’s Week on Wall Street event is expected to include a tour of the Bloomberg offices in New York, as well as a tutorial on some of the primary functionalities provided by the service. CMC The CMC (Career Management Center) is set up to provide students with guidance and information regarding the internship and full-time job search. The Finance Club is very lucky to have its own CMC representative, Meg Flournoy. Meg is a great resource and very responsive to students’ needs. Alumni Directory The Alumni Directory is a useful database that you may use once at Fuqua. This database will give you access to the plethora of alumni in the working world and their contact information. Current students can attest to how helpful Fuqua alumni have been in the job search. Please take special care in regards to etiquette when reaching out to alumni. Duke MBA Finance Club Resource Guide

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What you can do now Most alumni will tell you to read the latest books concerning your potential career path. The following is a list of books that we have been told to read by various alumni on Wall Street: Too Big to Fail, Liar’s Poker, Option Volatility & Pricing, The Big Short, Money Business, Distressed Debt Investing, When Genius Failed, Black Swan, Barbarians at the Gate: The Fall of RJR Nabisco, Fool’s Gold, etc. Reach out to people you already know in your prospective area of interest. Ask them intelligent questions about what you can do to prepare to enter that specific or a similar area. Visit the Duke MBA Finance Club web site.

Cover Letter and Resume Resume During your first month at school, your resume is your top career priority. Your resume encapsulates, in one page, everything about who you are and who you want to be. At first glance, a resume appears to be a backward looking document – everything on it has happened in the past. In reality, however, a good resume is a prospectus: a forward looking document that tells future employers about why they want to hire you. While your resume MUST be honest and accurate you have substantial discretion on what to include and what to exclude. The rubric is simple: include that which highlights the qualities recruiters consider important to the job you are applying for. You should have a number of people look at your resume and give you comments. While you do not have to incorporate everyone’s suggestions, this will give you an idea of what an “outsider” thinks of you when he or she reads your resume. Second years are a huge resource for resume review. Even investment banking analysts find that second years who did summer internships are able to provide them with helpful advice on how to make their resume more appealing to firms. The Finance Club will organize a resume review where you can sign up to have a second year look at your resume and provide feedback. You should also find additional readers on your own. The CMC also provides a resume content review service through Career Fellows as well as through the CMC itself, but most students find that this is NOT enough. Also, keep in mind that a second year who has had success in the recruiting process may be able to give a different perspective than that of a career management counselor. Duke MBA Finance Club Resource Guide

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You should take the resume review process extremely seriously and not wait until the last minute to have people review your resume. This is especially true since many times, a firm will make sure you are interviewed by someone who has not met you beforehand. In this case, their first impression of you will be based on your resume. If your resume does not show you in the best light possible, or is sloppy, you may not advance in the interview process no matter how much rapport you developed with the firm over the course of the year. Again, the CMC will provide some valuable best practices but here are a few finance-specific to consider:  Banks take confidentiality very seriously. Do not put anything on your resume that suggests you are breaching a former confidentiality agreement, whether formal or informal (careful with client names if you were formerly in a client-service position).  Be HONEST! The difference between an interview and no interview, a job and no job, will not likely be overcome by stretching the truth. Do you really speak fluent Spanish (“Porqué el índice de acciones Chilenas "IPSA" no considera ninguna empresa minera de cobre, siendo Chile uno de los mayores productores de cobre en el mundo?”)? Were you really an active member in XYZ club (Well, it just so happens that XYZ’s cabinet member has the next interview)?  You can go either way on GPA – some firms will ask and some will not. You definitely can’t go wrong either way but should be prepared to discuss if the topic comes up.  Don’t be afraid to have some fun with your “Other Interests”. Although seemingly insignificant, this is an opportunity to differentiate yourself. Instead of “Travel” say where you like to travel. Instead of “Movies” say which genre. Many have found that they were asked about their other interests (because they were unique). Every interview is a great opportunity for casual conversation. Cover Letter Most students spend too much time worrying about cover letters. The reality is that a cover letter will virtually never advance your prospects. It must be taken seriously, however, because it can seriously damage your application if it has errors. The best approach is to design a cover letter that minimizes risk. With cover letters, resumes, and other written materials, accuracy is of the essence. Read, reread, and read again. Cover letters should be fairly simple. You don’t need to reinvent the wheel when writing them. Use your cover letter to highlight why you would make a good fit for the industry, but that can be quickly tailored for each specific firm to highlight the people you have met during the recruiting process and what unique attributes of that firm appeal to you. Most students structure cover letters with three main parts: Duke MBA Finance Club Resource Guide

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Introduction: Tell the reader what you are applying for and perhaps mention some of the people to whom you have spoken.  Body: Highlight the parts of your past work experience and education that you feel are the most relevant to the industry you are looking to enter.  Closing: Thank the reader for taking the time to review your resume. Use second years, including your career fellows, as resources during the cover letter process. A note for international students: Be sure to have native speakers proofread your resume and cover letters to ensure that they are grammatically flawless. There is very little tolerance for imperfect English in written materials of this level of importance.

Recruiting Timeline For better or for worse, recruiting starts fast and it does not slow down. Review the timeline below and understand your responsibilities. Sep

Oct

Nov

Dec

Jan

Corporate Presentations WOW

Informational Interviews Resume Drops

Closed list Interviews

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August o CMC sponsored events (see CMC for exact dates)  Learn about the general recruiting process including best practices, resume advice, etc. These events are a good chance to get the wheels spinning although they are generally not finance-specific. You will also earn bid points1.  The CMC, in coordination with the Center for Financial Excellence and several alumni will be hosting a new event this year that is tentatively scheduled for August 7th. This focus of this event is to provide incoming students with some higher level education on careers in finance.

1

Bid points allow you to bid for an interview slot in the event you are not chosen by the company. In general, however, investment banks do not allow candidates to gain a spot on the closed list via bid points. However, you should still attend these events in the event you path diverges from investment banking.


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September o Finance Symposium (9/22/10) o Finance Club events regarding recruiting o CMC sponsored events – continued  Mock career fair, mock corporate presentation, resume review, LAMP list o Meet your Career Fellow October o Week on Wall Street (Over fall break – October 21st – 27th)  This may be a good time to schedule some Informational Interviews  Travel to visit investment bankers and sales & traders and learn about the job while also marketing yourself. Although not mandatory, this is highly recommended. o CMC sponsored events – continued  Cover letter review, mock interviews o Company presentations begin  This will happen either at the end of September or beginning of October. Last year kicked off on September 30th. See CMC for listing of campus visits. o Informational Interviews November o Finance Club mock interviews o Informational Interviews o Reach out to firms on your LAMP list that do NOT recruit on campus. This is very important so you have a safety net should on campus recruiting not work out. December o Resume Drops o Closed Lists released o Continue reaching out to firms on your LAMP list January o On campus interviews  Generally the first and second week of January – see CMC for exact details o Off campus interviews  Generally the second week and on o Continue reaching out to firms on your LAMP list February – May o Interview continued  Not everybody gets a job right away – interviews continue, especially for boutique investment banks. Keep monitoring the CMC job postings; it is


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not at all uncommon for bulge bracket firms to post opportunities through the spring.  Continue reaching out to firms on your LAMP list Undetermined Dates o Day in Charlotte  An opportunity to visit investment banks in Charlotte during this day trip o Company-sponsored office hours, mock interviews, and case studies  Once specific dates are determined details will be circulated through the Finance Club newsletter


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Interview Logistics Interview closed lists generally come out in early- to mid-December, depending on the firm and whether the interview is a result of on-campus or off-campus recruiting. For on-campus recruiting, please check CareerCompass for the results. Do not send emails to the CMC or the company asking for an update. As soon as the company submits their closed list for interviews to the CMC, this information is updated in CareerCompass. Preparation Practice. Practice. Practice. You have about a month before interviews kickoff. Team up with other people interviewing for similar positions. Practice your story, know every detail on your resume and be able to put bullet points into STAR format.

Preparation Model January (Interviews) Fine Tuning

“Why Banking” story

Valuation

WACC

WOW

Corp Fin

Subject Areas

Confidence & Composure

Basic Finance and Accounting Knowledge Understanding of Finance and Banking Industry September


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Typical Finance Questions See each section for function-specific questions Past Experience 1. Walk me through your resume. 2. How do you work in teams? 3. Describe a time when you worked successfully in a team. 4. Describe a time when you worked successfully as a leader. 5. What kind of manager do you like? 6. What is the biggest risk you've ever taken? 7. What's your biggest failure? 8. What's your biggest accomplishment? 9. Give me an example of something quantitative you've done in the past. 10. Why did you change jobs from abc to xyz? 11. Tell me something you've quit. 12. Name a time when you've sold something. 13. What are your short/long-term goals? 14. Have you ever dealt with an ethically ambiguous situation? What did you do? Personality Traits 15. Tell me about yourself - personal. 16. Tell me a joke. (Make sure it is clean) 17. If you could have dinner with anyone dead or alive, who would it be? 18. Describe yourself. 19. How would a friend describe you? How would your boss describe? 20. Why should we hire you over the other candidates we are going to interview this year? 21. If we gave you the offer right now, what would you say? 22. Name 3 traits to describe yourself. 23. Name 3 strengths. 24. Name 3 weaknesses. 25. Why wouldn't we hire you? 26. What's the most important thing to you? 27. What motivates you? 28. Name the best party you've ever been to. 29. If you had a day to do anything you like, what would you do? 30. What makes you unique? 31. What do you think of affirmative action? 32. What do you think of the president? 33. What's your favorite sport? 34. What interests you outside of work? 35. Why are you passionate about the markets? 36. How do you stay up to date with the markets? Duke MBA Finance Club Resource Guide

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Business School 37. Why business school? 38. Why Fuqua? 39. What's your favorite class? Teach me something from that class. What was your grade in that class? 40. Do you like Fuqua? What do you like/dislike? 41. How has B-school changed your life? 42. What is your least favorite class? 43. Outside of classes, what is your favorite thing at school? Firm-Specific 44. Why this firm? (Be able to give a quick history of the firm); also know recent transactions and what actions (if any) did the given firm take to get through the recession? 45. What other firms are you interested in? 46. Who is our CEO/Chairman? What is our market cap? What is our stock price? 47. Who do you know at this firm? 48. If you haven't done an informational here, why not? 49. Why would you pick our firm over the other firms that you are interviewing with? Economy 50. Name 3 things you read in the paper today and tell me why they are important to the markets. 51. If I gave you 1 million dollars, how would you invest it? 52. What's the safest possible investment in today's markets? 53. What role does the housing market play in the economy? 54. Where is the economy going? Why? 55. What do the recent economic data points mean for the economy? 56. Based on this, where would you invest? (Do your recommendations for stocks and sectors etc. jive with your assessment of the economy?) 57. Name a fixed income product you would recommend me buying. 58. What factors control currency exchange rates? 59. What do you think the FED will do at the next meeting and why? 60. What did the FED do at the last meeting? 61. Do you agree with the FED's actions? 62. How can the government influence the economy? 63. Where do you see the S&P 500, DJIA etc. in the next year? Why? 64. How does inflation affect the bond market? The stock market? 65. Where do you think interest rates are going? Does this always depend on the FED?


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Best Practices Below is a list of some basic best practices. Of course this list is not all-inclusive so please feel free to consult second years if you see a gray area. A couple broad best practices to please be aware of anytime you are in the presence of a recruiter:    

Turn off your cell phone and never look at it during a company presentation, interview, etc. If your cell phone is your timepiece, buy a watch. Dress the part, shave, shower, etc. “Punctuality is the courtesy of kings, the honor of a gentleman and the certain obligation of any man (or woman) of business” – be on time! Honor your commitments – if you say you will be somewhere, or do something – do it! Do not skip company presentations, Week on Wall Street visits, etc.

Attending Company Presentations Company presentations begin in earnest at the end of September. Be sure to sign up for them in CareerCompass before the applicable deadline so the company has your name on their attendee list. If you miss a deadline, you may still go to the presentation, but complications can arise. In either case, be sure to sign in when the event begins so the company has a record that you attended. A couple things to consider:    

Pay attention to dress code although there will rarely, if ever, be an occasion when you should dress business casual. Have questions prepared – this will demonstrate that you are proactive and have a genuine interest in the firm and the industry. Wear your nametag. The CMC has a list of best practices relating to company presentations and the subsequent networking – good to review.

Thank You Notes & Email Correspondence For those you spoke to at Company Presentations: Send a thank you note (email) only if you had a meaningful conversation with the individual. Be sure to be specific in the note so that person remembers speaking with you. For those you met with for informational interviews: Send a thank you note (email) within 24-48 hours. Be specific in the note so that the person remembers your visit as they are likely to have many informational interviews over the course of the fall. Also, stay in touch with the individual and send them meaningful follow-up. Duke MBA Finance Club Resource Guide

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A couple key points on Thank You Notes:  

Grammar must be perfect – no excuses. Ask someone to double check if you are unsure.2 Keep it short – the shorter the better. A rule of thumb is that the note should fit into a single Blackberry screen. DO NOT summarize the company presentation and dive into your theory on why you think the recruiter’s firm is well positioned in today’s economy and how you liked the presenter’s tie and have wanted to be an investment banker (or whatever position you will be applying for) since you discovered your first smart key in excel.

Office Hours and Informational Interviews See each section for additional details

2

If English is not your first language, it is a good idea to have a native speaker proofread any correspondence with a recruiter. The CMC, in fact, has a program where people are staffed to proofread correspondence for non-native speakers – see CMC for details.


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Investment Banking Dear Finance Club Member,

Welcome to Fuqua – you have chosen a fantastic MBA program that will give you all the opportunities in the world to pursue investment banking. As Investment Banking Director for the Duke MBA Finance Club, I will be your first resource in helping you navigate the recruiting process and landing where you want to be. Before Fuqua I spent four years with Deloitte & Touche in New York City as a CPA. It was a great experience – accounting is a valuable background in the world of finance – but early on I realized that I was not to be a career auditor and turned my sights towards investment banking. Business school seemed like the best avenue to Wall Street so I engaged in the application process you just completed. This summer I will be interning with Goldman Sachs in their Financial Institutions Investment Banking Group. There were several strategies I took that I found helpful. First, I figured out what I wanted to do early and began networking as soon as I could. In fact, I visited more than a half-dozen banks before arriving at Fuqua. This is certainly not the norm but if you have the opportunity to begin networking early I suggest you do so. Second, I read the paper relentlessly and was active in market discussions. It is my opinion that recruiters care more about your perspective on the economy than how you did on a statistics quiz. Third, I worked hard and did not bite off more than I could chew in the fall. This meant that my involvement in several “fun” clubs did not take off until Spring 1. This is just my story – take advantage of the second years as each seems to have taken a different approach. There is no right answer. Once again, welcome and please do not hesitate to reach out to me.

Best Regards & Good Luck, Ged Johnson Investment Banking Director


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WHAT IS INVESTMENT BANKING? An “investment bank” is a catchall term that refers to organizations that do some combination of the following functions:    

Provide strategic, financial and valuation advisory services Raise capital through the issuance of equity, debt, or hybrid securities Advise companies in merger & acquisition and restructuring deals Offer specialized products and services that satisfy the needs of corporate and governmental clients

Essentially, the bank is an intermediary between those who have money (investors) and those who try to put it to use (clients/corporations). Some banks also have private equity investment arms (making banks the investors) and private client services businesses (helping wealthy individuals invest). How are investment banks structured? As illustrated below, investment banks span a variety of businesses including private equity, fixed income, equities and private client services in addition to investment. For the purpose of this guide, we focus on the vertical below “investment banking”.


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Investment banking groups typically have industry groups, product groups, or some combination thereof. All banks are not the same so it is important that you understand the difference between them (See Bank Overviews” below). Industry groups cover, you guessed it, industries. Most large investment banks will cover virtually all industries in one capacity or another. For instance, some may have a dedicated Aerospace & Defense industry group while another bank will consolidate this group into General industrials – again, it is important you understand the group structure before you interview. Product groups, conversely, typically include the following:  

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Equity Capital Markets (“ECM”) – This group has a focus on any transaction relating to equity securities, for instance initial public offerings. Debt Capital Markets (“DCM”) – This group focuses on investment grade debt related transactions such as issuances. DCM is also an important group supporting the various industry groups as many M&A and strategic transactions involve a debt component. Leveraged Finance (“LevFin”) – Leveraged finance provides the same services as DCM except for non-investment grade debt. Mergers & Acquisitions (“M&A”) – This group focuses on the buying and selling corporate entities or assets. Most bulge bracket banks have independent M&A groups although it is not uncommon to find a bank where each individual group handles M&A independently. Additionally, boutique investment banks typically focus exclusively on M&A and in fact often specialize in buy-side or sell-side M&A o Buy Side M&A: As a buy-side M&A advisor you help your client make acquisitions. The buy-side process is more analytical and involves a tremendous amount of due diligence and game theory as you navigate your way through an auction held by the sell-side investment bank. It is important you properly evaluate your target, understand the risks and trends, and identify a purchase price just high enough to win the deal but not overpay. Meanwhile, you need to also figure out how to pay for it (Hint: Call your friends at DCM). The biggest downside of buy-side M&A is that the investment bank only earns a fee if you win the bid. o Sell Side M&A: As a sell-side M&A advisor you help your client make a sale. In contrast to buy-side M&A, you will earn a fee as long as you find a seller. The process as a sell-side advisor is different, where the primary focus is to manage the sales process. You identify potential buyers, manage the due diligence war room and evaluate the offers to ensure your client receives the greatest value in the transaction (remember, transactions are not always executed in cash, hence the “value” emphasis).


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Should I be a product or an industry investment banker? This is obviously your choice, and yours alone, but it is a great question to ask recruiters in the fall. Industry group proponents will talk about enhanced client interface, the ability to work with a variety of products and to truly become an expert in a particular industry, creating a valuable platform into industry or private equity. Product group proponents will highlight the quantitative emphasis and ability to become a true product expert working across many industry groups. Product groups also tend to have more predictable hours although take this with a true grain-ofsalt and consider it relative only to an industry group. What do recruiters look for in an investment banker? This question is more complicated than it seems. Take a moment to look at the second years who interned in investment banking last year – would you say they are all the same, more or less? Probably not. Below are some characteristics we believe are important – give some consideration regarding if and how you fit into this framework. Back to the question above, regarding what the second years have in common; they all wanted investment banking badly, for the right reasons, and pursued it aggressively. Desired Characteristic

Opportunities to Demonstrate

Industry Knowledge

• Knowledgeable of finance and banking industry • Excited by the work • Understands differences in the companies’ and groups’ cultures

• • • •

Finance Symposium Corporate Presentations Week on Wall Street Informational / Behavioral Interviews

Interpersonal

• • • • •

• • • •

Networking events Resume Previous awards / recognition Information / Behavioral interviews

Analytical

• Grasp of finance and accounting • Basic valuation knowledge • Problem solving skills

• GMAT scores, GPA’s, other degrees • Technical interviews • Market interrelationships

Management

• Handles stressful situations • Manages teams effectively • Clear future career goals

• Leadership demonstration • Composure during interviews • Career goals interview questions

Will excel in the company Passes the airport test Demonstrated professional excellence History of delivering results Experience in driving change


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BANK OVERVIEWS There are many ways to categorize investment banks, with many categories overlapping, including bulge bracket, large, pure, full service and boutique. Below is a listing of those investment banks that extending offers, through either on or off campus recruiting, in 2010 and/or maintain a consistent relationship with Fuqua: 

Goldman Sachs & Co. o Overview: Bulge bracket investment bank with a consistent relationship with Fuqua, visiting campus each year extending three internship offers for the summer of 2010. o Internship Structure: Interns are placed into one of the following industry groups; consumer retail, FIG, healthcare, industrials, leveraged finance, natural resources or technology, media & telecomm. All M&A and equity transactions are handled directly by respective industry groups. o International Opportunities: On-campus recruiting focused on U.S. positions – see CMC for additional details. o Core Recruiting Team: Charles Lockyer (MD, Financial Sponsors), Neil Wolitzer (VP, Real Estate), Kevin Lawi (Associate, Leveraged Finance), Andrew Rutter (Associate, FIG) and Max Rahklin (Associate, FIG) o 2010 Interns: Ged Johnson (Insert Group), Shaden Marzouk (Healthcare) and Suma Prasad (Leveraged Finance)

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RBC Capital Markets o Overview: A growing middle-market investment bank which is beginning its relationship with Fuqua. This past year, it extended two internship offers for its New York office and one offer for its San Francisco office. o Internship Structure: Generalist program where interns are staffed on transactions across different industries. o International Opportunities: On-campus recruiting focused on U.S. positions – see CMC for additional details. o Core Recruiting Team  New York: Rob Cascarino (Director, Leveraged Finance), David Russ (VP, leveraged Finance)  San Francisco: Devon Ritch (Director, M&A) o 2010 Interns: Eric Lewandowski (NYC), David Rosenberg (NYC), and Nikhil Sharma (SF)

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UBS Securities LLC o Overview: UBS is a bulge bracket investment bank, with a very strong presence in private wealth and asset management. Fuqua is not a core school for the investment bank, but they visit every year and have historically made offers (both


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o

o o

o

in IB & S/T). In 2010, two IB summer offers were extended, one on-campus and one off-campus. Two other summer offers were also made in Sales & Trading. Internship Structure: The recruiting process is group specific, and the interns are placed into one of the following industry groups: consumer retail, energy, FIG, healthcare, industrials, leveraged finance, M&A, power & utilities, and technology media & telecomm. The candidate should seek to get to know as many as possible in his/her group(s) of choice. In 2010, the candidates are allowed to interview up to two different groups at the second round. International Opportunities: On-campus recruiting focused on U.S. positions – see CMC for additional details. Core Recruiting Team: Gokay Urenay (Media), Anton Sahazizian (M&A); Both of them conduct interviews on campus; Recruiting/Campus Coordinator Andi Parsley 2010 Interns: Todd Lyall (Power and Utilities), Frederick Kuo (Health Care)

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Credit Suisse o Overview: Bulge bracket investment bank consistently serving as one of the Fuqua Finance Club’s major sponsors, extending four internship offers for the summer of 2010. o Internship Structure: Interns are placed directly into a product or industry group. Typically smaller Summer Associate class sizes ensure participation in live transactions, while the capstone is an independent project/pitch presented to senior bankers at the end of the internship. o International Opportunities: Truly a global investment bank with opportunities worldwide, although campus recruiting is focused on domestic placement. o Core Recruiting Team: Steve Pierson (MD, FIG), Bill Raincsuk (MD, TMT), Peter Fritz (VP, Global Industrials) and Avinash Vijaysankar (Associate, TMT) o 2010 Interns: Meghan Gallagher, Gaurav Mittal, and David Wishen

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Barclays Capital o Overview: Bulge bracket investment bank with a consistent relationship with Fuqua, visiting campus each year and extending eight internship offers for the summer of 2010. o Internship Structure: Interns are placed into industry or product groups. Interns rank there top choices and the bank places them according to availability. If you become a full-time employee, your first year as an associate will be spent rotating among three different groups after which you will be permanently placed. M&A product group not available as an associate (handling by each individual group). o International Opportunities: On-campus recruiting focused on U.S. positions – see CMC for additional details. o Core Recruiting Team: Henry Johnson (MD, Mergers & Acquisitions), Jason Trock (VP, FIG), Eric Javidi (Associate, Natural Resources ), Tim Hagerty (Associate, DCM), Anthony Cottonaro (Associate, FIG), Jesse Shefferman (VP, Healthcare) and Claire Pearson (Associate, Healthcare) o 2010 Interns: Santiago Stel, Samayita Das, Peter Fazio and Aki Garrett.


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

Morgan Stanley o Overview: Bulge bracket investment bank with a consistent relationship with Fuqua, although Fuqua is not a core recruiting school. Morgan Stanley intends to make annual trips to campus and made two internship offers for the summer of 2010. o Internship Structure: The majority of the Summer Associate class joins the Associate "pool" alongside full-time Associates. However, exceptions to accommodate intern preferences and bank needs are made. You may have the opportunity, for example, to move directly into Real Estate, Global Capital Markets or the Financial Institutions Group, among others. o International Opportunities: On-campus recruiting focused on U.S. positions – see CMC for additional details. o Core Recruiting Team: Whitney Horne (Associate), Renuka Nayani (Associate), Matthew Morse (Vice President), Carl Nordberg (Vice President). o 2010 Intern: João Carlos A. B. Soares (LatAm Group).

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JP Morgan Chase o Overview: Bulge bracket investment bank with consistent relationship with Fuqua, visiting campus several times during the fall semesters and hosting the Finance Club during Week on Wall Street. JP Morgan extended three investment banking offers for the summer of 2010. o Internship Structure: Interns are placed directly into product or industry groups. Incoming interns are invited to a “Sell Day” in the winter and afterwards are asked to preference their group choice. o International Opportunities: On-campus recruiting focused on New York positions – see CMC for additional details. o Core Recruiting Team: Sarah Youngwood (Executive Director, FIG), Matt Sable (Associate, FIG), Warfield Price (VP, Debt Capital Markets), Xavier Vegas (Associate, Latin American), Robert Birdsey (Associate, Natural Resources), Jerel Registre (Associate, FIG) and Amy Bell (Associate, M&A) o 2010 Intern: Shawn Saparamadu, Caoi Sarhan

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Harris Williams & Co. o Overview: Middle market investment bank with sell-side M&A focus. Although headquartered in Richmond, HW&Co. has offices across the country and now in London, allowing candidates the opportunity to express a regional preference. HW&Co. maintains a consistent relationship with Fuqua, visiting campus many times over the course of the academic year and participating in various Finance Club and Private Equity Club events. HW&Co. extended two internship offers


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o

o o o

for the summer of 2010. Internship Structure: Generalist program spanning ten industries including Consumer, Energy & Power, Healthcare, Industrials, Telecomm and Transportation among several niche industry groups. Recent interns have typically had financial services experience prior to attending Fuqua which is an advantage given the less formal training structure typical in the middle market. International Opportunities: HW&Co. opened a London office, the first international office, within the last twelve months. Core Recruiting Team: John Neuner (Managing Director), Sam Hendler (VP, Boston), Joe Sporacino (VP) 2010 Interns: Christopher Zeien (Boston), Quinn Amesbury (Richmond)

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Bank of America Merrill Lynch o Overview: Bulge bracket investment bank with a consistent relationship with Fuqua, visiting campus each year extending three internship offers for the summer of 2010. o Internship Structure: Interns will rotate throughout the summer (generalist structure) into any of the following groups: Consumer & Retail, Energy & Power, Financial Institutions (FIG), Financial Sponsors, Global Industrials, Healthcare, Mergers & Acquisitions (M&A), Real Estate, Gaming & Lodging, or Technology, Media & Telecom (TMT). o International Opportunities: On-campus recruiting focused on U.S. positions – see CMC for additional details. o Core Recruiting Team: Brian Kinkead (MD, Global Healthcare Group), Cavan Yang (VP, M&A), Tanya Joseph (Associate, Global Healthcare Group), Piyush Phadke (Associate, Financial Sponsors), Mike O’Leary (Associate, TMT), Jonathan Lesko (Associate, FIG) o 2010 Interns: Rafael Blanco, Sam Payton, Matt Walsh

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BNP Paribas o Overview: BNP Paribas is a global leader in banking and financial services, and one of the world’s top five banks. The bank has little relationship with Fuqua, but receives resumes for off-campus recruiting. o Internship Structure: Interns are placed into one of the following groups; Corporate Finance (M&A and Equity Capital Markets) or Structured Finance (Loan Syndications, Leveraged Finance, Structured Debt, Export Finance or Project Finance) o International Opportunities: Off-campus recruiting focused on U.S. positions. o Recruiting Team: Stephanie Godfrey (Human Resources)


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o 2010 Interns: Felipe Hartwig (LATAM) 

Lazard o Overview: Premier middle market investment bank supporting M&A, financial restructuring, and private placement services. Headquartered in Minneapolis, with offices in New York, Chicago, and Charlotte. LLM has extended one 2010 summer internship offer for the Healthcare group based in Charlotte. o Internship Structure: Generalist and specialist programs available covering nine industries including Business Services, Consumer, Energy/Power/Environment, Food & Agriculture, Healthcare, Industrial Products & Manufacturing, Media & Communications, Plastics & Specialty Chemicals and Technology. Interns typically have financial services experience prior to attending Fuqua to complement the less formal training structure typical in the middle market. o Core Recruiting Team: Scott Smith (Managing Director, Charlotte), Julie Stock (Head of Recruiting, Minneapolis) o 2010 Interns: Corum McNealy (Charlotte)

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Wells Fargo o Overview: Bulge bracket investment bank with robust Fuqua pipeline. Wells has investment banking opportunities around the country and recruiters visit campus from a variety of offices o Internship Structure: Interns are placed into one of the following groups: Consumer, Healthcare & Gaming (Charlotte, New York), Energy & Power (Charlotte, Houston), Equity Capital Markets - Origination (New York), Financial Institutions (Charlotte), Industrials (Charlotte, New York), Middle Market Group (Charlotte), Non-Investment Grade Debt Capital Markets (Charlotte), Technology, Media & Telecom (Charlotte, New York, San Francisco) o International Opportunities: On-campus recruiting focused on U.S. positions – see CMC for additional details. o Core Recruiting Team: Steven J. Taylor (MD, Debt Capital Markets, High Grade Fixed Income), Kevin Scotto (Director, Non Investment Grade Debt Capital Markets), Michele M. Anene (Associate, Consumer, Healthcare & Gaming Investment Banking) Adam Huitt (Associate, Consumer, Healthcare & Gaming Investment Banking) o 2010 Interns: Shal Chowdhury (M&A), Sharad Raisinghani (TMT), Dwayne Wyre (Non Investment Grade Debt Capital Markets)

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Fuqua maintains relationships with many more financial institutions, see CMC website for a complete list. Notables include Citigroup, Piper Jaffrey, BB&T Capital Markets,


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M&T Bank and a variety of boutiques.

Pre-Interview Office Hours Several companies have office hours for investment banking. If they do, please attend. Bring a resume, business cards, and be ready for an informal interview! Informational Interviews The informational interview is often referred to as the “Round 0 Interview”. On paper this is an opportunity to exchange information with a potential employer – a true learning opportunity for both parties. In reality, it will be the first impression you make upon the investment bank so it is highly recommended you schedule informational interviews only if you are prepared for a real interview. Some informational interviews begin with the banker asking “How can I help you?” and you spend the entire session talking about career moves, the markets, last night’s Yankees game, etc. Other informational interviews can be more intense – Why banking? Why our firm? Walk me through an LBO model? It is hit or miss so be prepared. You probably won’t earn a place on a closed list with an information interview but you can easily lose a spot. Informational interviews should be taken very seriously. Here is what we recommend as the best approach: 1. Approach the contact with whom you have connected best, this can be an associate or a VP but should not be a managing director. Send them an e-mail expressing interest in setting up an informational interview. They often will try to set you up with a person in your group of interest so feel free to be specific regarding the type of person with whom you would like to meet. a. Some firms have streamlined the informational processes where a single person will be charged with managing informational interviews – be sure to pay attention during company presentations to see if this is the case with your target firm. 2. Prepare as though it is an interview. Some interviewers will ask you tons of questions while others will sit back and wait for your questions – on that note, have good questions prepared. 3. Wear a suit, get to the office early – again, treat it like an interview. 4. Send a thank you note after the interview. What are “Good Questions”


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Whether attending a company presentation, office hours, an informational interview or the real interview – you will be called upon to ask questions and it is wise to make them good questions – some things to consider when you prepare your questions: 

  

Should I know this already? o Ex: Asking somebody a question that has already been asked or is obvious – don’t ask somebody what group they are in if it is on the nametag. Can I learn this on the company website? o Ex: How many people are at your company? Can I learn this on the CMC website? o Ex: When is your resume drop date? Can I learn this from a second year? o Ex: What is it like to be an associate intern?3

Investment Banking Interview How do I apply? For on-campus opportunities you will apply through Career Compass. Generally this involves submitting a resume and a cover letter. Often the banks will also ask you to submit an application on the company website – be sure to pay attention through the fall as recruiters will be clear regarding their expectations. Off-campus opportunities are case-by-case and each respective Human Resources department will guide you through the process. How will I find out if I got an interview? With on-campus opportunities you will receive an e-mail from the CMC regarding your interview status and your status will also be updated within Career Compass. You will either be invited to interview, declined an interview or waitlisted. When are interviews? Do not plan that long awaited trip with your husband/wife/fiance/friend/relative/cable guy to the Maldives over New Year’s;; interviews come in a hurry. Most on-campus investment banking interviews begin around the first or second week in January (last year’s interview season kicked off on January 6th). Each company is different but most on-campus interview schedules involve a first and final round on campus within a 24 or 48 hour period. Some banks, though, will do 3

One of my least favorite questions to hear a candidate ask is “What is it like to be an associate?”. In fairness, there are very few people who could actually tell you what it is like – the seconds years have only been associate interns. You will have a few classmates who left associate programs to pursue other things; seek these people out. With this question – it is fair to ask but tailor it properly – if a recruiter rotated between several groups ask how the cultures varied. Or ask about a particularly memorable deal.


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first round interviews on campus and final round interviews at their office. Some will do all interviews in the office. Interview Questions & Answers The Finance Club website has a comprehensive and helpful collection of interview questions and answers – please see the website and practice, practice, practice. Generally speaking, my interviews all, without exception, followed this template:     

Walk me through your resume including a follow-up question or two on the resume. What are your strengths and weaknesses (These questions can be asked a thousand ways but they are always asked) Accounting question (i.e., How does depreciation flow through the three financial statements?) Valuation question (i.e., what are the valuation methods?) Market question (i.e., Tell me a deal you are following? Where do you invest?)

I always heard about the ridiculous and meticulous questions you might be asked in an investment banking interview and to be frank – I never once got these questions. I was never asked how many ping-pong balls fit in a 747. I was also never asked the price of oil. Here is my theory; if you come across as confident but humble (i.e., professional) the interviewer will treat you like a professional. However, if you are unprepared and stumble through some basics the recruiter may smell blood – it is at this point you may be poked with unpleasant questions – what is the GDP of Uruguay? Where is the VIX? What is the 10 year yielding?


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Sales and Trading Dear Finance Club Member, By means of a short introduction, I am the Sales & Trading Director for the Finance Club and your key second year contact for anything Sales & Trading related. Prior to Fuqua, I spent five years at JPMorgan in New York. I spent 1.5 years there in a Leadership Development Program and 3.5 years working on an Investments desk in the Private Wealth Management business. I am spending the summer interning at UBS in their equities division. We had a very successful year for Sales & Trading internship recruiting and the Finance Club is looking to expand and make this coming year even better. We hope this information guides you throughout a hectic first two terms and arms you with the material to make an impact with prospective employers. Should you need anything during the recruiting season, please do not hesitate to contact me. I look forward to working with you this year!

Best Regards & Good Luck, Jim Heaney Sales & Trading Director

What is Sales & Trading? Duke MBA Finance Club Resource Guide

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What do traders do? There are two basic types of traders: flow and proprietary. Flow traders make markets for clients of the investment bank by matching buyers and sellers. Proprietary traders use firm capital and take positions based on information gathered from research and models. Propriety trading at bulge bracket firms has recently been in the news as potential areas of regulation. As an aside, many firms allow their flow traders to take some proprietary positions. Again, this all depends on the firm. What do salespeople do? Salespeople, quite simply, sell products. They are the relationship managers for the investment bank. They use research from the investment bank and their knowledge of their client base to market products that make sense for their clients. What do structurers do? Structurers are responsible for creating and developing new products for the investment bank. Structurers consider client needs, tax issues, risk parameters, market dynamics, and other issues. In some firms, structurers double as salespeople. What are some types of desks? Sales & Trading divisions within each investment bank are set up differently. Many share the same types of desks. Here is a brief list of desks (most are self explanatory): Convertible Bond Trading, Equity Derivative Trading, Equity Research Sales, Index Arbitrage, FX Sales, Natural Gas Trading, Block Trading, Municipal Bond Sales, Correlation Trading, Volatility Trading, etc. This is an exceptionally small sample of available desks. Many bulge bracket firms have dozens and dozens of desks that may be of interest to you.


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Bank Overviews Here is a list of firms that have made offers to students during this school year. In the past, students have also obtained offers at smaller brokerage firms and hedge funds. If you are interested in Sales & Trading, do not limit yourselves to the firms below. 

UBS o Overview: Bulge bracket investment bank with a new relationship for S&T with Fuqua. Previously, UBS had focused on Investment Banking at Fuqua. UBS extended three internship offers (Equities) and one full-time offer (FICC) for summer 2010. o Internship Structure: Interns are placed into the Equities division or Fixed Income, Currencies, & Commodities. In those divisions, interns can expect 2-3 rotations. o Recruiting Team: Tim Chiodo (Associate) o 2010 Interns: Jim Heaney (Equities), Neil Advani (Equities) o 2010 Full-time: Will Moreno (FICC)

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Bank of America Merrill Lynch o Overview: Bulge bracket investment bank with a long standing relationship for S&T with Fuqua. The company extended two internship offers for Summer 2010. o Internship Structure: Interns are placed in 3 rotations which cover Equities, Fixed Income, Currencies & Commodities. o Recruiting Team: Steve Celona (MD), Kristen Hill (Associate), Matt Mallouin (Associate), Tim Cassidy (Associate), Michie Miller (Associate) o 2010 Interns: Dan Kim

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Citigroup o Overview: Bulge bracket investment bank with strong Fuqua alumni base. The summer associate program is deliberately kept small. Citi extended two internship offers for Summer 2010. o Internship Structure: US Interns are placed in 3 rotations which cover Equities, Fixed Income, Currencies & Commodities. o Recruiting Team: Tyrone Thomas (VP), Robert Giacomelli (Associate), Curt Demers (Associate) o 2010 Interns: Boris Moyston (NYC), Philip King (Hong Kong)

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Barclays Capital o Overview: Bulge bracket investment bank with strong Fuqua relationship. Barclays extended two internship offers for Summer 2010. o Internship Structure: US Interns are placed in 3 rotations which cover Equities, Fixed Income, Currencies & Commodities. o Recruiting Team: Steve Gordon (Associate), Jim Kernan (Associate) o 2010 Interns: Lia Arapoglou (NYC), Lawrence Pang (Singapore)


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BNP Paribas o Overview: European investment bank with growing Fuqua relationship. BNP extended no internship offers for Summer 2010, but did extend one full-time offer. o Recruiting Team: Jim (MD), Hampton Smith (MD)

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Deutsche Bank o Overview: Bulge bracket investment bank with little/no relationship with Fuqua. Deutsche Bank extended one internship offer for Summer 2010. o Internship Structure: Placement directly into group. o 2010 Interns: Mike Kaag (TX)

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Glencore o Overview: Global commodities and raw materials supplier with sales & trading division. o 2010 Interns: Lauren Willoughby (CT & London)

Pre-Interview Office Hours Few companies have Office Hours for Sales & Trading. If they do, please attend. Bring a resume, business cards, and be ready for an informal interview! Informational Interviews An integral part to getting on closed lists for interviews is Informational Interviews. You should set these up as soon as you are ready. In essence, these are interviews. Here are the steps to set up an informational interview. 1. Email an alumnus. Briefly introduce yourself and ask for time on his or her schedule where you can visit that person at their office and sit with him/her. 2. Try to set up multiple informational interviews for the same day (first by company and then if time permits other firms). Please be sure to leave enough time for travel. 3. On the day of, dress in business formal attire, bring resumes, and business cards. 4. Write a personalized thank you note to those people you have met. Keep it short. Stay in touch with that individual. The informational interview provides you with time to ask the individual questions about his/her job. You should have a list of prepared questions to avoid pauses in the discussion. Many times these informational interviews will be more conversation based. Ask smart questions. Even though these are not formal interviews, treat them as such. Do not pull out your cell phone, PDA, etc. Also, consider all information you see to be private and confidential. Duke MBA Finance Club Resource Guide

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Stock Pitches Pitches are an important part of the recruiting process. You should have a few long and short stock pitches. Do not limit yourself, however. You may also have other investment ideas (fixed income, foreign exchange, etc.). Alumni will be impressed if you have well thought out ideas. Think quality over quantity! Here is a very brief stock pitch that I used this past year.

It is also important to have a story behind each stock you are pitching. For example, I discussed how the healthcare bill could potentially increase sales of their main drug Revlamid. I also discussed marketing expansion outside the US as a way to boost sales. Additionally, CELG bought Gloucester Pharmaceuticals in late 2009. Try to have 2-3 theme ideas why your particular stock is a long or a short.

S&T Interviews Sales & Trading 1. Why sales & trading? 2. Sales or trading? 3. What makes a good sales person? 4. Tell me what a trader does. 5. What makes a good trader? 6. Equity or fixed income? 7. If you couldn't do sales & trading, what would you do? Duke MBA Finance Club Resource Guide

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8. A customer gives you a buy order which you complete. Afterwards, she/he claims it was a sell order what do you do? Stocks 9. Here are three sectors (Paper, Defense, Tobacco, Technology, Software, Healthcare, it could be anything). Are you long or short and why? 10. Name 3 sectors that you are long. 11. Name 3 sectors you are short. 12. Name a stock in each sector in the two questions above. 13. Give me 3 stocks you are long. 14. Give me 2 stocks you are short. 15. How do you value a company? 16. What ratios do you use when valuing a company? 17. When you look at a company's financials, what do you look at first, second, third and why? Market Data 18. Where are the S&P 500, DJIA, and NASDAQ? What are the percent increase/decrease YTD? Last 12 months. Last 3 years. 19. Same questions as #25 for FTSE and NIKKEI. 20. What is libor? What is libor's current level? 21. Draw today's yield curve: 3m, 6m, 2yr, 3yr, 5yr, 10yr, 30yr. 22. What is the price of oil, natural gas or gold? 23. Where are the following currencies trading? Euro, Brit. Sterling, Yen. 24. What was the most recent unemployment, consumer confidence number, housing starts, personal spending etc. etc. number? (know all recent economic data points) General Finance & Math 25. What is spot? What is a forward rate? 26. What is duration? What is the duration formula? How does it work? 27. What is Black-Scholes? What are the main components of B-S? 28. What is the square root of .1? 29. What is 13/16? 30. What is the yield curve? 31. If interest rates drop 20 basis points, how much does a zero coupon 2yr bond's increase/decrease? 32. What is the Dow Jones Industrial Average? How does it work? 33. What is CAPM? Why is it useful? 34. A sports player (let's say baseball) will have the option to get paid a fixed bonus (let's say $5 million) or a bonus based on how many homeruns he has hit over the course of a season. If he chooses the bonus based on homeruns, he will get paid $166,000 per homerun that he has hit over the season. The baseball player will have to make the choice Duke MBA Finance Club Resource Guide

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between either bonus structure halfway through the season. How would you value this option at the beginning of the season? Interview Brainteasers A train leaves from NYC heading towards LA at 100 mph. Three hours later, a train leaves from LA heading towards NYC at 200 MPH. Assume there's exactly 2000 miles between LA and NYC. When they meet, which train is closer to NYC? What is the sum of integers from 1 to 100? A snail is climbing up a 10 foot pole, it climbs 3 feet per day. While it sleeps at night, it slides down by 1 foot. When does it reach the top of the pole? Your sock drawer contains 8 red socks and 11 blue socks that are otherwise identical. The light is broken and you must select your socks in the dark. What is the minimum number of socks you need to take out to guarantee a matching pair? You are given a scale and a set of 12 marbles. One of the marbles is a different weight; it may be lighter or heavier than the rest. Identify and discard the different marble using the scale a maximum of 3 times, and determine whether it is heavy or light. From the term structure of interest rates you see that the five-year spot rate is 10% and the tenyear spot rate is 15%. What is the implied forward rate from year five to year ten? Source: NYU Stern

S&T Lingo Sales & Trading has its own language. It is important to be aware of some basic words that you may hear in speaking with people at various firms. The Greeks – Traders are very concerned with delta, gamma, theta, and vega. Know what these are! Pip – Measure in price of FX Vol – Short for volatility CDS or CDX – Acronym for credit default swaps or credit default index YTW – Acronym for yield to worst


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Private Wealth Management Dear Finance Club Member, Welcome to Fuqua and to the Finance Club! First, I wanted to give you a little background on myself. After college, I worked for 3 years as an analyst at Citigroup in their Asset Backed Securitization Group before returning to business school. At first, I was most interested in pursuing an Asset Management internship. However, after learning more about Private Wealth Management, I realized the field was more closely aligned with my interests and strengths. Many of you may have already determined what position you would like to pursue. Regardless of if you have come to a decision, I would encourage you learn about each track. You may discover another area that suits your personality and interests. Selecting an area to target early in the process will enable you to narrow your focus and allow you to make the most of the networking time you will have during the fall term. I hope to act as a resource to anyone who is interested in pursuing an internship in Private Wealth Management. I plan to host bi-weekly meetings to discuss various aspects of the industry, best practices, and interview preparation. I hope these sessions will be helpful to you as you manage your way through the process. Please feel free to reach out to me any time with questions, concerns, etc.

Best Regards & Good Luck, Megan Walsh Private Wealth Management Director


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What is Private Wealth Management? Generally, Private Wealth Managers work with clients (“high net worth individuals”) to allow them to manage their portfolios in the most efficient way possible. Where clients in the investment bank are corporations, clients in PWM are individuals, some with a highly sophisticated understanding of financial services, and others who have no knowledge of their finances and the best way to manage them. Think of it this way, working in PWM requires that you are able to understand highly sophisticated financial solutions, and be able to explain them to either the head of a hedge fund, or your grandmother in a way that each will understand. One other thing to note, this is a personal business – you will be handling the finances of your clients and gains and losses, good decisions and bad ones, will directly affect the client, so having a high level of emotional intelligence is important. More formally, a role in Private Wealth Management involves providing customized and sophisticated investment management and financial planning services delivered to high net worth individuals, corporate executives, and institutions such as foundations and endowments. Private Wealth Managers provide a personalized approach to financial management, tailoring portfolio’s to meet the specific needs of each client. The goal of PWM is to offer services that maintain, grow and provide efficient transfer of wealth. Clients may face a variety of financial and investing needs that the bank suits, such as:    

Estate planning Trust restructuring Stock Option Planning Tax Planning



Investment management /asset allocation o Equities o Fixed Income o Alternative Investments

Roles: There are three primary roles in Private Wealth Management, though depending on the firm, several of the below may be combined 1) Relationship Manager (“Banker” or “Private Wealth Advisor”): Primarily a relationship management role. Typically the first point of contact for clients. Sourcing new clients is a large component of this role 2) Investment Specialists: Focused on providing in depth analysis of the market and trends. Also in charge of executing trades of the clients behalf 3) Product Specialist: Typically not offered as an internship position, product specialists focus on one specific investment category (alternative investments, fixed income, foreign exchange)


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Bank Overviews 

Goldman Sachs & Co. o Overview: Large and growing Private Wealth Management unit. Consistent relationship with Fuqua, visiting campus each year extending three internship offers in Private Wealth for the summer of 2010. o Internship Structure: Interns work in a generalist role, focused primarily on relationship management and new client origination. Interns will rotate among different teams, and regional rotations are available in various offices around the country. Classroom training is an integral part of the program. o Core Recruiting Team: Joshua Block, Thomas Brasco, Steve Nowak o 2010 Interns: Bob O'Reilly Jr., Ray Sorrentini, Devin Fitzgerald

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J.P.Morgan o Overview: Fuqua has a strong relationship with the Private Bank, which serves the needs of ultra high net worth individuals. JPM , visiting campus each year extending three internship offers in Private Wealth for the summer of 2010. o Internship Structure: Interns rotate on 3 teams, assisting with client relationships and investing. Regional rotations are available in various offices around the country. Classroom training on the market and public speaking is an integral part of the program. o Core Recruiting Team: Joseph Markovich, Caroline Brecker, Katy Knipp, Bronwen Baumgardner o 2010 Interns: Trey Epps, Christopher Thompson, Megan Walsh

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Morgan Stanley o Overview: Global financial services firm, runs PWM through its Global Wealth Management Group. Morgan Stanley does not currently recruit at Fuqua for PWM, o Internship Structure: Interns participate in a 10-week program focused on Morgan Stanley’s platform, products and solutions. Interns will work on team and individual projects, including managing a portfolio, developing a business plan, pitching to mock clients, and generating viable prospects through multiple mediums

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Barclays o Overview: Bulge bracket investment bank with a strong PWM area. Barclays PWM visited Fuqua this year. o Internship Structure: Internship consists of a ten-week program where interns will learn about financial markets, products, tools and services Barclays offers.


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UBS o Overview: UBS is a bulge bracket firm, with a very strong presence in private wealth and asset management, particularly internationally. UBS does not recruit for PWM at Fuqua, so students interested in the firm will have to pursue an off campus search. o Internship Structure: Intern participate in a 10-week program focused on UBS; platform, products and solutions

Pre-Interview Informational Interviews Unlike Sales and Trading and Investment Banking, it is not necessary for PWM candidates to travel to New York to show interest in the firms. The recruiting teams for PWM tend to be small. Students will have the opportunity to develop relationships with the recruiting team during on-campus visits.

PWM Interviews General questions: 1. Why PWM? Why PWM over Asset Management? 2. What other firms are you interested in? What do you see as the primary differences? 3. In which geographic location are you interested in working and why? 4. For some firms: Which role are you most interested in (banker/investor) and why? 5. What tactics would you use to find new clients? How would you approach them? 6. How has your past experience prepped you for this role? 7. What was the name of your last interviewer? (trying to test your ability to remember 8. clients/information) 9. Without the ability to give clients recommendation directly, how will you add value this 10. summer? Case Questions: (for some interviews, you may be presented with a short summary of a potential client) 11. You’re meeting with a new client, in 2 minutes explain what happened in the market over 12. the past year? 13. Based on this, where would you invest? 14. If I gave you 1 million dollars, how would you invest it? 15. What questions would you have for this client? 16. What areas would you try to gain further clarification on? 17. What concerns do you have about this client? 18. What products/services would you discuss with the client?


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Corporate Finance Dear Finance Club Member, By means of a short introduction, I am the Corporate Finance Director for the Finance Club and am here to be your key contact for anything Corporate Finance related. I spent four years prior to Fuqua at FBR Capital Markets in Washington, D.C. managing the Finance Planning and Analysis Group. Prior to FBR, I spent 3 years working as a consultant for a boutique economic consulting firm specializing in the field of international transfer pricing. This summer, I will be interning at Liberty Mutual Insurance in their Middle Market Distribution Group in Boston. We have had a successful year for Corporate Finance internship recruiting and the Finance Club is looking to expand and make this coming year even better. We hope this information guides you throughout a hectic first two terms and arms you with the material to make an impact with prospective employers. Should you need anything during the recruiting season, please do not hesitate to contact me. I look forward to working with you this year! Best Regards & Good Luck, John Boyum Corporate Finance Director


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What is Corporate Finance? Overview In corporate finance, you’ll deal with the financial decisions made by the company you work for, with the goal of maximizing the value of the corporation, while minimizing risk. Corporate finance and accounting professionals are responsible for managing a business's money - forecasting where it will come from, knowing where it is, and helping its managers decide how to spend it in ways that will ensure the greatest return. They pore over spreadsheets that detail cash flow, profitability, and expenses. They look for ways to free up capital, increase profitability, and decrease expenses. If any department wants to make a big expenditure, it’s usually got to be run by the folks in finance first to ensure that the company is in a position to fork over the dough. They’ll look at the best growth path for the company, whether that’s through acquiring other companies or re-investing in the business to expand internally. A company's size, complexity, industry, and stage of development - for example, whether it’s a startup or established business - determine its corporate finance department's specific responsibilities. All companies need to balance their books. But some large technology companies, for example, also need to hire financial experts to value potential acquisitions. Others (e.g., insurance companies) have hundreds of millions of dollars to invest and need financial wizards to manage that money. What will you do as a corporate finance professional? Corporate finance includes two key functions: accounting and finance. Accounting concerns itself with day-to-day operations. Accountants balance the books, track expenses and revenue, execute payroll, and pay the bills. They also compile all the financial data needed to issue a company's financial statements in accordance with government regulations. Finance professionals analyze revenue and expenses to ensure effective use of capital. They also advise businesses about project costs, make capital investments, and structure deals to help companies grow. In spite of their different roles, finance and accounting are joined at the hip: the higher levels of accounting (budgeting and analysis) blend with financial functions (analysis and projections). Thus, finance and accounting are often treated as one, with different divisions undertaking particular tasks, such as cash management or taxes. What do recruiters look for? Finance and accounting jobs require strong analytical and quantitative skills. If you have a knack for using numbers to understand patterns that influence business, you'll be of great value to your employer. You should also enjoy and excel at solving problems and be able to think critically about the numbers you're working with. Think of it as cracking a code: you need to take all of these numbers - income, expenses, profits, investments, cash flow - and decipher them in order to make the best decisions for the company. Duke MBA Finance Club Resource Guide

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To succeed in these careers, you need a strong attention to detail. To make wise business decisions, your employer will be depending on you to get the numbers right - every time. In order to do that, you’ll also need to have an understanding of and an interest in business. That includes reading industry and business publications to understand market conditions, economic forecasts, and trends. Finance professionals need to look at external factors that could potentially help or hurt profitability. This may be the career for you if you can effectively evaluate business scenarios and recommend a course of action based on quantitative research. Career Tracks Although conditions vary at different companies, people going into corporate finance generally start their careers either as staff accountants (for the corporate reporting function) or as financial analysts (for a business group or function). In both roles, you'll supply management with the information it needs to make smart, opportune decisions. Staff accountants consolidate information for the official corporate financial reports—primarily comparing the present to the past. Financial analysts, on the other hand, are assigned to either a product line or business unit. They help management set up profit objectives, analyze current unit results, and anticipate future financial performance. Over time, financial analysts and staff accountants eventually specialize in one of the areas described below. Accounting General accountants are responsible for producing all of the financial records a corporation uses to track its progress internally and to meet government regulations. Accountants gather all the information needed to compute a company's balance sheet, profit and loss statements, and income statements. They also track the corporate budget, cash flow, and pay all the bills. Treasury The treasury department is responsible for all of a company's financing and investing activities. This department works with investment bankers who help the corporation raise capital with stock or bond sales or expand through mergers and acquisitions. Treasury also manages the pension fund and the corporation's investments in other companies. The department also handles risk management, making sure that the right steps are taken to safeguard corporate assets by using insurance policies or currency hedges. Corporate Development and Strategic Planning Corporate development involves both corporate finance and business development. Finance experts in corporate development study acquisition targets, investment options, and licensing deals. Often they assess the best firms to buy or invest in, such as pre-IPO cutting-edge technology companies with complementary products that could either extend the company's product line or mitigate competition.


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Divisional Financial Services In this area, you work with each division's business team to prepare financial plans, make forecasts, and compare actual financial results to forecasts. You may also evaluate the financial consequences of alternative strategies. Responsibilities include everything from analyzing new business opportunities to restructuring a business or developing a capital spending program. The primary concerns are to find better ways of using company assets, reduce costs, and research better methods of forecasting. Financial services groups evaluate the risks versus potential return of any course of action and develop recommendations so that managers can pick the most profitable strategies, depending on their goals. Internal Audit When most people think of an audit, they think of an outside audit—a large accounting firm like Ernst & Young checking the corporate books on behalf of the shareholders. However, most large companies have an internal audit group that regularly visits individual company branches and checks the company's accounting systems. Internal auditors perform the investigative and corrective work that ensures the external auditors don't find anything. The internal audit group reviews the quality of the data, making sure it's both accurate and complete. They also evaluate whether the corporate accounting procedures are effective and universally followed. Finally, internal auditors introduce or revise procedures to improve efficiency and reduce costs. Tax Activities in this area involve administering taxes (i.e., paying taxes on time—or finding loopholes to avoid paying them) and determining how to decrease the company's tax burden. Responsibilities include working with attorneys on tax litigation, researching tax laws and reporting requirements by nation (if the company is international), and keeping up with new government rules and regulations. The tax department helps structure transactions, makes recommendations on the timing of acquisitions or sales based on what else will be written off that year, and can decide what corporate reporting structure reduces taxes—for example, creating a wholly owned subsidiary versus having an internal division. Source: WetFeet.com


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Company Overviews 

J.P. Morgan o Overview: As a Summer Associate in Treasury & Securities Services (TSS), you'll be placed on a product, segment or functional management team on projects where you'll interact with leaders throughout the organization-gaining management experience which will help you prepare for your future career in TSS. This includes hands-on assignments in which you'll contribute to business planning, product development, strategic planning, marketing positioning, and budgeting. o Industry: Financial Services o Position: Summer Associate in TSS

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ExxonMobil o Overview: With total assets of approximately $200 billion and operations and/or sales in about 200 countries, it is not surprising that sophisticated finance is a critical element in the corporation’s ability to maintain its superior financial strength and maximize shareholder value. ExxonMobil Treasurer’s seeks to attract individuals with a strong record of academic achievement, first-rate quantitative and analytical skills, and the drive to excel in a dynamic, high-performance international business culture to help us develop and implement innovative solutions to the financing challenges we face around the globe. o Industry: Energy/Utilities o Positions: Financial Analyst Intern – Treasury Group & Controller’s Group

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General Motors: New York Treasurers Office o Overview: General Motors’ Treasurer’s Office (GMTO), located in New York, offers summer interns a broad array of job experiences in Corporate Finance. Summer interns are placed in one of GMTO’s groups which include Global Funding & Cash Management, Global Foreign Exchange & Commodities, Capital Planning, Overseas Finance, Business Development, and Treasury Operations Group, and will work closely with the group’s director, managers, and treasury analysts in executing assigned projects. o Industry: Automotive o Position: Treasury Analyst

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Johnson & Johnson o Overview: An MBA LDP Intern will be responsible for completing project(s) that deal with strategic business directions. These project(s) will provide exposure to top management and multiple functional areas. Assignments can be in a variety


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of areas such as sales and marketing finance, operations finance, or licensing and acquisition analysis. Interns will be expected to demonstrate in depth understanding of the critical issues, decision-making, project management and data analysis skills o Industry: Health Care o Position: MBA Finance LDP Intern 

Intel Corporation o Overview: Be an integral part of the smart decisions that help Intel stay on top of the technology industry Intel Corporation has exciting Operations Finance internship. As a member of the Finance Intern team, you will have opportunities to analyze business issues, recommend solutions, demonstrate your analytical and problem solving abilities and work with peers and business partners to influence business decisions that maximize shareholder value. o Industry: Computer Hardware o Position: MBA Finance Internship

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Unilever o Overview: Finance MBA Summer Interns will join one of the Finance areas aligned with our key business processes (category management, sales, financial planning and reporting, accounting operations or operations/ supply chain). The Intern will interact across functional areas to lead a project with real impact to the business. By providing an integrated financial perspective on the impact of business decisions, the Intern makes recommendations and influences decisions that maximize value for the business. Typical Intern projects have included competitive analysis and benchmarking, product portfolio analysis and optimization, business process redesign and have all involved working across functions. o Industry: Consumer Products o Position: MBA Finance Internship

Other Companies that recruit at Fuqua (see CareerCompass for more information):  WR Grace  IBM  Procter & Gamble  Thomson Reuters  Genentech  MeadWestvaco Corporation  AT&T  Best Buy  BB&T  Delta Airlines  M&T Bank Corporation  American Airlines  Western & Southern Financial Group Duke MBA Finance Club Resource Guide

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Pre-Interview Companies look for “Fit” & “Skills”  

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Genuine interest in company/position/industry Personal Story… the “Why” o Networking, Informational Interviews, Attend Events Excellent Analytical & Organizational skills o Quantitative Problem Solving – Finance & Accounting o Excel & Database – Modeling & Data Analysis o Project Management – Teamwork & Cross-Functional o Initiative – Go-Getters & Risk Taking Managerial / Leadership Potential Finance / Industry experience a plus…

Every company is different when it comes to technical and analytical skills, but FIT is critical!!!

Corporate Finance Interviews Interview Process 

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1st Round o Behavioral o Situational & Case Interviews o Current Events o Technical nd 2 / Final Round o Networking + Senior Management Exposure o All of the Above

Interview Basics A quick review of corporate finance interview basics… most companies conduct a standard “fit” interview. The majority will not be extremely quantitative (especially first rounds) but be prepared with financial concepts and strategies anyway. 1. Company strategy: Be familiar with the company’s business model and what makes the company stand out from its competitors. Research companies from their websites, annual reports, Lexis/Nexus, Bloomberg, WSJ, and industry publications.


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2. Industry analysis: Research current market trends affecting the industry and know what role its competitors play within it. 3. Job/Position: Understand how finance is organized within the company. Are you interviewing with a treasury group or corporate control? Would you be working for a central finance organization or for a business unit? 4. Finance questions: Know how to value a project. Memorize NPV, IRR, EVA definitions, differences, downfalls, and how these measures are used to determine the viability of a project. (see list of technical interview questions below) 5. Sample interview questions:  Walk me through your resume. Know your resume inside and out. Interviewers will ask most about bullet points.  Tell me about yourself  How have you led a cross-functional team to bring about positive change/ to overcome significant challenges? (Have two examples)  Give me an example when you have demonstrated leadership. (Have one workrelated and one school related)  What accomplishments are you most proud of?  What are your strengths and weaknesses?  Why should we hire you?  Convince me you want to work in the (_________) industry  Give examples of how you analyzed a complex problem. What was the result? Be prepared for simple case questions. Interviewers will present a situation and ask you what they should do. Remember to provide the STRATEGY behind your decision as well as your finance answer. The company wants more than a number cruncher; answer all implications of the project. Corporate Finance Technical Interview Questions General Finance 1. What could a company do with excess cash on the balance sheet? 2. What’s the difference between IRR, NPV and Payback? 3. What are the impacts on earnings if a company builds a new factory using debt? operating lease? capital lease? cash? 4. Why would a company repurchase its own stock? What signals (positive & negative) does this send to the market? 5. When would you take a project with a negative NPV? Duke MBA Finance Club Resource Guide

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6. 7. 8. 9.

What is Sarbanes Oxley and what are the implications? Why might a company choose debt over equity financing, or vice versa? What are the ways a company can manipulate cash flows? What are the primary causes of bankruptcy and what are the options available to a company? 10. Let’s say that I have a bond with a 5% coupon. What happens to the market price when the prevailing interest rates rise to 8%? How are the coupons affected? 11. Which corporate bond would have a higher coupon, an AAA or a BBB? What are the annual payments received by the owner of a five year zero coupon bond? 12. Would you rather have $___ today or $1 a day for the rest of your life? How would you go about valuing this amount? 13. What happens to a company’s equity when assets rise $1 million and liabilities fall $2 million? 14. What does it mean when cash flow from operations on a company’s cash flow statement is negative? Is this bad news? If so, is it dangerous? 15. Suppose that you constructed a pro forma balance sheet for a company and the estimate for external funding required was negative. How would you interpret this result? 16. How will a decrease in financial leverage affect a company’s cost of equity capital, if at all? How will it affect a company’s equity beta? 17. If you want to assess the health of a company and you could choose between looking at 3 years of income statements or 3 years of balance sheets, which would you choose and why? 18. What are some reasons why a company might tap the high yield market? 19. Finance managers today face many challenges in governance and reporting as a result of recent legislation and events. Given what you know about these recent news events and legislation, what difficulties do you think finance managers are dealing with today? Valuation 20. What are the different ways to value a company? 21. Walk me through a DCF valuation. What is free cash flow and how is it calculated? What would you use for a discount rate? How do you determine the terminal value? 22. How do you calculate WACC? 23. What is the formula for CAPM? 24. What is beta? How and why do you unlever a beta? 25. What is the current market risk premium? What is the current risk-free rate? 26. What kinds of multiples do you think are most important when valuing a company and why? What are some reasonable ranges for these multiples? 27. What makes a good comparable company for valuation purposes? 28. What is the difference between enterprise value and equity value?


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29. Why should the fair market value of a company be the higher of its liquidation value and its going-concern value? 30. What is an LBO? Why leverage up a firm? 31. Let’s say I want to value a natural gas pipeline, how would you suggest I do that? What do you think is the appropriate risk free rate to use with this pipeline? How would you finance buying a pipeline like this? 32. As a manufacturing firm, assume you are producing at full capacity. Marketing comes to you with a great new product idea and says the firm needs to begin producing it. What analysis would you do, and what things would you look at in response to marketing’s request? Accounting 33. Walk me through a typical income statement, balance sheet or cash flow statement. Discuss the inter-relationships between the income statement, balance sheet and cash flow statement. 34. What is EBITDA? Why is it important? 35. What is goodwill? How does it affect net income? 36. What is the difference between cash and accrual accounting? 37. If Accounts Receivable increases during the period, how does that impact cash? 38. What is a 10K? What is a 10Q? 39. What are deferred taxes? How do they arise? 40. If I under-depreciated by $3,000, walk me through how that would affect the financial statements. 41. Which of the three financial reporting statements (balance sheet, income statement, statement of cash flows) is most important and why do you believe this is so? 42. Assume that you have a significant amount of inventory on hand. What control measures could you put in place to ensure employees aren’t running off with your inventory? 43. How would you go about forecasting balance sheet accounts in the future—specifically inventory, accounts receivable, and accounts payable? Case Questions 44. “There are three ways to account for oil exploration costs: The FIRST is to write-off all exploration costs as incurred, the SECOND is to capitalize successful explorations and write off the rest, and the THIRD is to capitalize all exploration costs. Which one results in the lowest Net Income, the highest Book Value, and the highest Cash Flow?” 45. Your company’s weighted-average cost of capital is 12 percent. You believe the company should make a particular investment, but its internal rate of return is only 10 percent. What logical arguments would you use to convince your boss to make the investment despite its low return? Is it possible that making investments with returns below capital costs will create value? If so, how? Duke MBA Finance Club Resource Guide

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International Finance Dear fellow Fuqua student, This section of the resource guide serves students who are specifically interested in exploring Finance outside the U.S. The various job functions are mainly within Investment Banking, Sales & Trading, Private Banking, and Corporate Finance. I am the International Finance Director for the Finance Club, and will be your key contact for advice on international recruitment, especially in Asia. A little about myself – Prior to attending Fuqua, I spent 3 years on the Equity Sales Trading desk in Macquarie Securities and in the Development Bank of Singapore (DBS). Prior to the Capital Markets world, I started my career in the area of market intelligence consulting work with Synovate Business Consulting. Over the summer of 2010, I interned at Barclays Capital in Singapore, on their Commodities, and FX Sales desk. In 2010, we had a very successful year for international recruitment in Hong Kong, Singapore, Bangkok, Tokyo and Mumbai. We hope this information guides you through the hectic Fall 1 semester, and arm you with the know-how to make a positive impact with your prospective employers. Should you need anything during the recruiting season, please feel free to contact me. I look forward to expanding the Fuqua brand internationally with you as the years pass!

Best Regards & Good Luck, Lawrence Pang International Finance Director


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Important points to note: Despite differences in the interview process between U.S recruitment and internationally, it would be wise to be very conscious of the following: 1) It is extremely time-consuming to be interviewing for both U.S. and International finance jobs. Focus on one geographical region at a time. I cannot stress this enough, as it is crucial to be FOCUSED on the geographical region AND the function of Finance (eg. S&T, I-Banking, etc) you intend to head towards. 2) Interviews for Asia-based finance jobs (eg. S&T, I-Banking, etc) have a tendency to focus more on your prior career before Fuqua. This means that the resume is the first point of contact between you and the recruiter – not informational interviews. Therefore, if you have the finance experience, show it! And if you do not have prior Finance experience, fret not. Showcase in your resume your enthusiasm for Financerelated subjects; enroll in the CFA; take up a leadership position in the various Finance clubs in Fuqua, etc. The main goal is to show in your resume you are working towards Finance, and that your previous work experience has Finance-related and analytical aspects. 3) Keep in close touch with your friends/contacts from other MBA schools in the U.S, especially the B-schools such as Columbia/NYU, Wharton, Harvard/MIT, Chicago/Kellogg. These schools are located in the major cities: NY, Pennsylvania, Boston, Chicago, and international offices of bulge bracket banks hold their road shows/corporate presentations in these cities. They specifically invite these schools, though are also welcoming to Fuqua students, so long as you register. In other words, you need to be part of the grapevine! For example, Deutsche Asia holds its roadshow in mid-Oct, Goldman Sachs Asia in Nov. Most of these bulge bracket firms’ road shows occur during the period of Oct-Nov. Again, be FOCUSED on which of these international road shows you want to attend, as it will clash with U.S.-based informational interviews, and other corporate presentations. 4) SHARE. Keep the Fuqua teamwork brand alive, by helping your peers. This means having each of you spread the word around when you know of an international recruitment occurring outside of Fuqua. Remember, there is strength in numbers. Lots of recruitment info does not go through one person only – it’s a collective effort on the part of the students to bring Fuqua to the front of these recruiters. Duke MBA Finance Club Resource Guide

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How is the recruitment different outside of the U.S? Timeline is different Whereas Week-on-Wall-Street starts in mid-Oct, Week-in-Hong-Kong occurs during the Thanksgiving period of late-November. The online application deadline outside the U.S. is generally in end-Nov to early-Dec. Bear this in mind as there is no recourse once you miss the online application deadline. Note that the bulge bracket banks request you apply for only ONE geographical region, for ONE job function. (eg. Choose ONE region amongst U.S, Europe, and Asia – for say, S&T). Therefore, as mentioned, the onus is on you to be FOCUSED in your application. The recruitment for Asia/Europe starts later than in the U.S. (compared to U.S. timeline in pg 11)

Few informational interviews Generally, finance recruitment outside the U.S. does not involve informational interviews. As the Asia/Europe offices of global bulge-bracket banks do not come directly to Fuqua to recruit, these offices do not provide private face-to-face informational interviews. What occurs are road shows / corporate presentations in major U.S. cities in Oct-Nov, where the Asia/Europe offices send representatives to meet with prospective students. During such road shows, the informational interview takes on another form, where it is a group setting, with students from other B-schools clustered with you. Therefore, it is imperative to ask the right questions which the interviewer would take positive note of. You might be meeting with them again if you’re selected for interviews, which occur in Jan-Feb. My experience to gain informational interviews was one of reaching out to Asia-based alums, and speaking to them on the phone at their convenience. This occurred during the period of late Duke MBA Finance Club Resource Guide

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Fall I and early Fall II. Be mindful that it’s generally during the daytime in Asia, when alums would speak with you, so be prepared to stay up late in the U.S. to speak with them. It’s definitely worth the time and effort.

Questions posed during international recruitment Interviews Lots of examples of questions specific to the U.S. have been posed in the earlier sections of this Resource Guide. Take time to read through them, especially in the JOB FUNCTION you have targeted (eg. I-banking, S&T, Research). These questions will enable you to deliver a CLEAR picture you want to portray to the international interviewer. At the end of the day, you must showcase that you have a good attitude to learn and the wherewithal to undertake pressure. Here are a few questions gleaned from the Class of 2011, who were interviewing with Asiabased bulge bracket banks. These questions range across recruitment for I-banking, S&T, and Research. Kindly note they are only examples of what we experienced in the interviews, and are not to be viewed as all-embracing questions to be memorized; there are many other ways these questions may be asked. 1. Why I-banking, and not S&T? 2. Why S&T, and not I-banking? 3. Why (location)? (eg. Hong Kong, Tokyo, etc) 4. We have only 5 spots. Why YOU over the 500 resumes from top ten MBA programs like HBS, Wharton, Stanford, etc? 5. What do you think about the current market? 6. Pitch me a stock. Why this stock, and not its peers? 7. Why did you leave your previous career and go to Fuqua? 8. Why did you go to (your undergrad college)? What made you start your career in (eg. Marketing) before heading to Fuqua? 9. How will you use your strengths here at (eg. Barclays, Goldman Sachs) for Sales? Or Research? 10. Which firms have you had interviews with? What are the results? Duke MBA Finance Club Resource Guide

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2010: International Internships The Class of 2011 had a successful year for international finance recruitment. The following are classmates whom you may seek out to leverage on their experience. The bulk of Asia-based recruitment was in Hong Kong. Banks Barclays

Function IBD S&T Credit Suisse Research IBD BoA-ML Research Citigroup S&T

Hong Kong Binjie Li (Icy)

Singapore

Tokyo

Bangkok Chaniporn Chitvarakorn (Ni)

Mumbai Amit Mehra

Lawrence Pang Takashi Kida Zhang Zidong Xiong Yuan (Ivy) Devanjan Sinha Phillip King

Work closely with the CMC: Meg Flourney Meg Flourney has been very supportive of international hirings for Fuqua students, and is the designated counselor for China. She is in contact with HR personnel, especially for Hong Kong and China. If you know of other contacts which could help, please be mindful to share with Meg. This allows for added clout from Fuqua to enable a deeper connection between you and the international company you are targeting. Let’s bring Fuqua to greater heights in the international arena.


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Investment Banking Interview Prep

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