Course Project: Interview a Finance Manager" Interview Questions

1. In my course, Risk and Return: How to Identify, Measure, and Incorporate Into Capital Budgeting Decisions, we examined risk in terms of corporate accounting and capital budgeting. What are some of the risk factors that our firm can control? How do we try to manage those? *Alternative: What are some of the risk factors that any firm can control? Answer:

2. What are some of the risk factors that our firm cannot control? *Alternative: What are some of the risk factors that any firm cannot control? Answer:

3. In our course, we examined the WACC. Do we currently use the WACC to inform decisions about capital expenditures? In what ways is it helpful? *Alternative: How do firms typically use the WACC? Answer:

4. In the course Im taking, weve looked at CAPM. How do you use CAPM? How does it help? *Alternative: How do firms typically use CAPM? Answer:

5. Our course content discussed systematic risk. We compared the systematic risk in firms such as an airline company versus a candy company. Can you describe in general terms the systematic risk in our firm? *Alternative: Choose a firm or favorite company that you often do business with and briefly describe your intuitive understanding of its systematic risk. Answer:

6. Id like to find ways to use the risk and return concepts that Ive been learning about to become a better operational manager. What recommendations do you have for what I could be doing better, or what I could start to do for the first time? *Alternative: Briefly describe the ways that you see the course content being helpful to you as you develop a greater understanding of how capital budgeting decisions are made. Answer: