Barclays Capital: Equity research (graduate)

Question

How would you value an oil producing company?

Candidate's answer

I would estimate all the profits that the company makes and using an appropriate discount rate conduct a DCF analysis.

Question

What brings you in front of me today?

Candidate's answer

I'm currently being made redundant and BarCap is one of the few companies that is coming out of the downturn in a favourable light. It has not accepted government funding and is recommended by friends that currently work here.

Question

How many passengers travel through Heathrow on an average day?

Candidate's answer

There are 5 terminals, with approximately 50 gates in each one. 1 plane at each gate every 4 hours. Each plane carries approx 200 people. Legal travel times only for 20 hours in a day. So 5 x 50 x (20/4) x 200 = 200000.

These questions were provided to us by a candidate claiming to have interviewed at the institution named above. We cannot guarantee that these were the actual questions asked.