Gentlemen,
For a small M&A boutique in the Netherlands I am applying for a job as an analyst.
Now, during my masters in Finance strange as it may seem, I had no courses in accountancy at all, not even one.
Therefore I find a couple of questions in the case the firm gave me quite challenging and I am wondering if my answers are correct:
Here is one:
I have calculated the value of a company using a DCF analysis. Now they ask me "if the company would have an undisclosed reserve in their assets, what would be the effect on the value of the firm?"
I think this means that the value increases with the value of the undisclosed reserve minus whatever taxes have to be payed over this suddenly appearing capital. But is this right or would I basically kill any chance I have by giving such an answer because I appear like an accountancy dummy?
For a small M&A boutique in the Netherlands I am applying for a job as an analyst.
Now, during my masters in Finance strange as it may seem, I had no courses in accountancy at all, not even one.
Therefore I find a couple of questions in the case the firm gave me quite challenging and I am wondering if my answers are correct:
Here is one:
I have calculated the value of a company using a DCF analysis. Now they ask me "if the company would have an undisclosed reserve in their assets, what would be the effect on the value of the firm?"
I think this means that the value increases with the value of the undisclosed reserve minus whatever taxes have to be payed over this suddenly appearing capital. But is this right or would I basically kill any chance I have by giving such an answer because I appear like an accountancy dummy?