Killer interview question: What are the value drivers for a typical marine company?

This question was asked at an interview for a junior-level corporate-advisory position at an investment bank in Australia.

The question in full

Throughout the interview I was asked the usual questions such as "where is the $A heading" and "how would you calculate firm-free cash flow?", in addition to brainteasers like "what is 39x29?". All of these I answered quite competently, but then the interviewer dropped this bomb...

"What are the value drivers for a typical marine company, and how would you fully mitigate the risks attached to each of these?"

How did the candidate respond?

My immediate thought was "What on earth is a typical marine company?"

I knew that prolonged silence was a sure way to lose the job there and then, so after some hurried thoughts, my rubbish response was along the lines of:

"The primary value driver would be ticket revenue from passenger flow, together with revenue from advertising, boat leasing, car parking fees, and any other potential services such as an on-site cafe. One could offset the risk of a downturn in business by shorting the stocks of competitors, or investing in a diversified portfolio of assets with risks uncorrelated with the marine company."

Did the candidate get the job?

Needless to say, I completely misinterpreted the meaning of the question and just lunged into a discussion of revenue sources and investments/portfolio theory. I did not get past the interview stage.

The only saving grace was that my positive responses to other questions meant my application was forwarded to the equities group and the fixed income group, with which I am now nearing the final round.

So in the end perhaps this killer question was part of the process in determining which division is right for me, and it was most certainly an intriguing experience.

What would you say in answer to this question? Leave your response in the comments box below.