Rothschild: Investment banking division (graduate)

Question

What three words would your friends use to describe you?

Candidate's answer

Integrity, honesty, diligence.

Question

I was shown the market cap of two companies and asked how much I would pay for each.

Candidate's answer

Impossible to value a company based on market cap alone, potential future earnings, branding and other intangibles all play a role. Market cap may give an indication of how investors value the company but this is not necessarily its true worth.

Question

What effects agricultural commodity prices?

Candidate's answer

Basically supply and demand. Demand is fairly constant but rising steadily as population increases and eating habbits become more westernised. Restrictions in supply, such as drought, will raise prices as will transfer costs such as the Baltic Dry Index. Long run trend for reduced supply as marginal returns on new land lower than on that already in production.

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.