The Wall Street Skinny

29. Q&A! The WACC, Interview Tips, Circularity in Models, and Essential Skills for Traders


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Another listener favorite Q&A episode, where Kristen and Jen tackle real questions submitted by our listeners.  We use these questions as teaching tools to explain concepts far beyond the scope of any individual question, so be sure to stay tuned to learn valuable insight about the world of Wall Street.  Our questions in today's episode include:

1.  How does changing the WACC (Weighted Average Cost of Capital) impact valuation when running a DCF (Discounted Cash Flow) analysis? What are the different theories of optimal capital structure and how does this all fit into the real world when companies are choosing whether to issue debt or equity?

2.  How do I ace my interview in a markets-based job, like the sales and trading division of an investment bank?

3.  Why do we need circularity in investment banking models?

4.  How do I know when to stop "buying the dip" when trading the markets?

If you have any questions you'd like answered in a Q&A episode of our podcast, please write to us at [email protected]

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