Capex, Maintenance vs. Growth
Foundational for DCF and LBO modeling; asked across all banking groups.
Where does capex appear on each statement? Distinguish maintenance from growth capex and explain why the split matters in valuation.
2 questions reported in RBC interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
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Model builds
Built in the spreadsheet grid
Merger models, accretion/dilution, purchase accounting and deal judgement. 1 question
Foundational for DCF and LBO modeling; asked across all banking groups.
Where does capex appear on each statement? Distinguish maintenance from growth capex and explain why the split matters in valuation.
Reserve-based valuation, commodity decks, contracted cash flows and PPAs. 1 question
Energy coverage and natural resources funds test reserve-based valuation directly.
How do you value an exploration and production company? Why don't the standard methodologies work?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
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