Morgan Stanley: Investment bank (internship)

Question

Why Morgan Stanley? What makes our business model special?

Candidate's answer

Morgan Stanley is a leader in investment banking. However, what makes it different is its corporate culture. Friends who work for the company tell me that the environment is more supportive than it is competitive. Also with the current recapitalisation through the Bank of Tokyo Mitsubishi UFJ deal and the change of company status to a bank holding company, MS is one of the companies that is best positioned for success in the current market.

Question

In the current market conditions, why investment banking?

Candidate's answer

It has taken me a long time to decide why I wanted to enter investment banking. Having really thought this decision through, I came to the conclusion that IB has all the aspects that I'm looking for in a job: you need to know international politics, know how people think and act (so elements of sociology and psychology), be creative, and numerically apt. It's the only job where I feel I could use my diverse range of skills fully. It is extremely intellectually challenging.

Why in the current market conditions? It's not about the market - it is about my personal goals. IB is my first choice, and if I am unable to enter the industry, I will look at alternatives. But if I do succeed, I will have achieved exactly what I want. Job security is not something I am concerned about because I am confident that I can get many jobs with my education and skill set, it's just that they wouldn't be my first choice. I wanted to start on the very top of my priority list when applying for summer internships.

Question

I see you worked for an internet magazine, if you were to sell this internet magazine, what method would you use to value it as a seller?

Candidate's answer

This particular magazine currently has weak cash flows, which means this method would yield a smaller result than any of the comparable companies method. I think that in this case I would use the multiples method (I explained patiently what the multiples method is and how to implement it). This method, as a seller, would allow me to get a higher selling point. However, there are some risks associated with this method - especially important is the careful choice of comparable companies, which is not always easy. In this case, it might be difficult to find comparable companies because of the fact that in many respects the company I worked for is unique.

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.