Framework to Solve McKinsey, Bain and BCG Finance Case Interview Questions.AVI

[tripathigaurav]

is it common for companies to throw such finance (or other stream) intensive questions at candidates irrespective of their background? if yes, how would you suggest handling them?

[firmsconsulting]

This is correct. You are misunderstanding the video.

[igorkonstantinovsky]

this is completely wrong. swapping debt for equity DECREASES your leverage. Share buy backs inherently have NO EFFECT on leverage. If you need to finance a share buy back through debt then that would increase your leverage. Otherwise you would just end up spending the firms spare cash.

[MsShopgirl87]

how come you say that they should take on more debts if they are part of a takeover threat, wont it affect the company even more badly then? I understand that no one wants to take over them, but however the company itself will suffer from taking on more debts. But then you say that one of the option to increase leverage is swap debt for equity. You are saying 2 opposite things???

[MsShopgirl87]

how come you say that they should take on more debts if they are part of a takeover threat, wont it affect the company even more badly then? I understand that no one wants to take over them, but however the company itself will suffer from taking on more debts