JP MORGAN CORPORATE BANKING

JP MORGAN CORPORATE BANKING

Questions with Complete Solutions (Latest 2025) Stock Price of JPM? - Correct Answers ✅$91.62 WALK me through a DCF - Correct Answers ✅DCF is a discounted cash flow valuation method that calculate the intrinsic value of the company

• Project out financial statements into the foreseeable

future, then you, based on projections, you derive at your unlevered FCF

• Solve for the discount rate, discount each year's projected

FCFs to arrive at their present values

• Calculate terminal value, then discount it
• Sum up Discounted cash flow values and then the

discounted terminal values to arrive at your implied enterprise value How would 10 dollar depreciation affect the financial statements? - Correct Answers ✅Starting with the income statement, you have a $10 depreciation expense, but a $4 tax benefit. The net income is -$6, which flows through to the statement of cash flows. Add back non-cash expenses (depreciation) of $10 and you get an increase in cash from operations of $4. This flows through to the balance sheet where cash increases by $4, net PP&E decreases by$10, and the difference from that (found in net income) is -$6 which flows into the statement of retained earnings. (Total Assets 1 / 3

JP MORGAN CORPORATE BANKING

Questions with Complete Solutions (Latest 2025) down by -6, Shareholder Equity down by -6, Balance sheet is balanced) ***How would you account for 10 dollar increase in accounts receivables? - Correct Answers ✅Revenue = 10 Tax - affect NI =6 CFS = start with 6 Subtract out 10 for non cash revenue -4 net change in cash

balance sheet: start with -4

• add 10 for

***How would you account for 10 dollar increase in accounts payable - Correct Answers ✅--- What is the discount rate for DCF - Correct Answers

✅WACC

What is the formula for WACC - Correct Answers ✅%of equity*cost of equity* %of debt*cost of debt(1-tax rate) What is CAPM? - Correct Answers ✅ 2 / 3

JP MORGAN CORPORATE BANKING

Questions with Complete Solutions (Latest 2025) How are the 3 main financial statements connected? - Correct Answers ✅Net income flows from income statement into cash flow from operations on the CF statement Net income minus dividends is added to retained earning from the prior period's balance sheet to come up with retained earnings on the current period's balance sheet Beginning cash on the cash flow statement is cash from the prior period's balance sheet and ending cash on the CF statement is Cash on the current period's balance sheet Walk me through the financial statements - Correct Answers ✅The financial statements are the income statement, balance sheet and statement of cash flows The income statement is a statement that illustrates the profitability of the company. It begins with the revenue line and after subtracting various expenses arrives at net income.The income statement covers a specified period like quarter or year.Unlike the income statement, the balance sheet does not account for the entire period and rather is a snapshot of the

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