|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. This job in investment banking has no hopes for advancement. Employees are paid huge salaries but for two or three years live under harsh, abusive conditions until they can go back to school for their MBA degrees.
(a) Vice President.
(b) Managing director.
2. What do investment banks no longer put up front to help the new business?
(a) Their stock portfolios.
(b) Their lawyers opinions.
(c) Investor names.
(d) Their own money.
3. In investment banking, what continually happened?
(a) Clients sold multiple companies at once.
(b) Companies hardly buy other companies.
(c) Clients bought companies at inflated prices.
(d) Clients compromise the sale of their companies.
4. How did the two men console themselves after accepting the offer?
(a) They will know their way around the company.
(b) A more senior position would be easier.
(c) They got to spend all the money the wanted.
(d) Troob and Rolfe will have one another.
5. What kind of man was Ed Stanley?
(a) The head of the marketing department.
(b) An ugly rich old man.
(c) An upper level associate with lots of money.
(d) A rich man with lovely life and a number of golf courses.
6. What did the winning investment bank distribute to potential buyers to get a sale?
(a) A pitch book.
(b) A deed of sale.
(c) A graph booklet.
(d) A prospectus.
7. When an associate worked on a pitch book, what could they always count on?
(a) Last minute changes.
(b) Everything being perfect.
(c) An easy process.
(d) Waiting on other associates for missing pages.
8. In general, what are associates expected to do?
(a) Be personal assistants for managing directors.
(b) Sit in on meetings and take notes.
(c) Create lies for their companies.
(d) Generate a lot of factual information for the buying and selling of companies.
9. How much could a summer associate expect to work?
(a) All the time and all hours.
(b) Only on the weekends.
(c) An 80 hour week.
(d) A normal 40 hour work week.
10. Who developed the pitch book?
(a) Associates under the guidance of vice presidents.
(b) Angry managing directors.
(c) Analysts and associates.
(d) Repressed junior vice presidents.
11. What did most of Bubble pitch books require?
(a) Constant brainstorming.
(b) At least 300 page pitches.
(c) Complete secrecy.
(d) Very colorful pictures.
12. John Wolfe attended _____ while Peter Trobb attended _______ Business School.
(a) Princeton; Yale.
(b) Brown; Stanford.
(c) Washington University; America University.
(d) Wharton; Harvard.
13. In theory, what were analysts supposed to provide?
(a) Comparable multiple analysis
(b) Junior objective cash flow analysis.
(c) Discounted cash flow analysis.
(d) An objective valuation analysis.
14. What is comparable multiple analysis?
(a) Creating additional comps for the market.
(b) Ignoring reputable comps in the market.
(c) Sharing comps with other investment banks.
(d) Forcing a selling company to match the profile of another company.
15. Who was often assigned to the above person's pitch books?
Short Answer Questions
1. How did the pitch book have to be designed?
2. Depending on the size of the deal that the investment bank brokered, what fluctuated?
3. If the associate or analyst does not come up with enough support for the valuation, what happened to them?
4. The summer between an MBA program is _________.
5. Why did one associate fall asleep while questioning Dick Jenrette?
This section contains 600 words
(approx. 2 pages at 300 words per page)