Data

Question 1

Valuation

IB

Answer 1

DCF WACC, Comparable, Precedent

Question 2

Valuation

Equity Research

Answer 2

DCF WACC, Comparables

Question 3

Valuation

Fund Management

Answer 3

Comparables, DCF WACC

Question 4

Valuation

PE

Answer 4

LBO/ability to pay, comparable, precedent

Question 5

Valuation

VC

Answer 5

VC (40-70%), DCF

Question 6

M&A Advisory

Answer 6

Morgan Stanley (300 deals. 1.5 tn deal value)
JP Morgan
Goldman Sachs
...
Lazard
Centreview (9)

Question 7

Share of MF/ETF Cap in largest complexes

Answer 7

2015
5 45
10 55
25 75

Question 8

Investment Banking

Answer 8

Financial Advisory

Underwriting (Debt, Equity)

Question 9

Institutional Client Services

Answer 9

FICC Client Execution

Equities (Equities Client Execution, commissions and fees, securities services)

Question 10

Investing and Lending

Answer 10

Debt
Equity
Other
ICBC

Question 11

Investment Management

Answer 11

Management Fees
Incentive Fees
Transaction Revenue!

Question 12

Davor and Wilson

Answer 12

New Information matters
Employment, interest, inflation
Macro announcements 11.4 bps opposed to usual 1.1 excess
Double volatility - 60% higher

Question 13

IPO reasons

Answer 13

Create public shares for acq. 3.56 59.4%
Establish market price
Enhance Rep.
Min. coc 
Broaden ownership
Attract analyst
VC out 2.54 32.2%

Question 14

PAT exp.

Answer 14

BoD CEO
Shareh. BoD
Investor in MF Manager MF
Taxpayer Bailout Shareholder
PE Firm CEO
Lim. Partner in PE PE Management

Question 15

PAT resolve

Answer 15

CG (control)
MA
PE
IPO
Delegated Monitor through bank loan

Question 16

Exit Voice efficacious

Answer 16

15 years ago
Anglo American Exist short termism
Japan and Germany Voice (1990) lack of conflict

Question 17

Wealth effect - takeovers

Announcement

Answer 17

Target +
Acquierer -
Combined +

Question 18

Global MA deals

Answer 18

2010 - 2015
Deals
75.000 - 90.000
Value
3.5 tn - 6 tn

Question 19

MA by country

Answer 19

2015
US 14.000 2 tn 
China 10.000 1 tn 
UK
Australia
Canada 4.000 0.3 tn

Question 20

MA by Sector

Answer 20

Other Services 33.000 deals 1 tn
Machinery
Wholesale
Chemical (2nd in value)

Question 21

PE globale

Answer 21

2010-2015
Deals
8000-15000
Value
0.3 tn - 0.67 tn

Question 22

PE by country

Answer 22

US 6600 deals 0.3 tn
China
UK
India (more deals than UK)

Question 23

Alternative Asset Management

Answer 23

Real Estate 45%
PE 35%
Hedge Funds 35%
As % of top 100 total AUM

Question 24

AUM Global Hedge Fund

Answer 24

2000 500 bn
2007 2700 bn
2015 3000 bn

Question 25

Location of hedge fund assets

Answer 25

80% US 20% Europe 10-% Asia

Question 26

Funds under Management by region

Answer 26

US 19 tn pension, 7.5 tn insurance, 13 tn mutual, 39 tn total UK 3.3 tn pension, 3 tn insurance, 1 tn mutual, 7 to total Japan 4 tn insurance, 6 tn total France, Germany 2. tn total

Question 27

Global mutual funds

Answer 27

2007-2008-2014 | 26-19-31 tn

Question 28

Mutual funds by country

Answer 28

``` US 15 tn Lux 3 tn Australia Ireland France UK ```

Question 29

Development US Mutual

Answer 29

1984-2014 0.3 - 15.5 tn x42

Question 30

Global overview

Answer 30

GDP 77 tn Stock 68 tn Bond 86 tn Bull House 83 tn

Question 31

Global Equity

Answer 31

1990-2015 | 10-68 tn

Question 32

Global Bond

Answer 32

1990-2012 | 10-86 tn

Question 33

Turnover | Bond Share

Answer 33

``` 1990-2015 Bond 5-42 tn Share 6-115 tn ```

Question 34

Equity linked Derivatives

Answer 34

1998-2008-2013 | 1.5-10-7 tn

Question 35

CDS

Answer 35

2004-2008-2012 | 5-45-15 tn

Question 36

Foreign Exchange Derivatives

Answer 36

1998-2008-2013 | 0.7-4-2.4 tn

Question 37

Commodity derivatives

Answer 37

1998-2013 | 0.2-0.4 tn max 0.6

Question 38

OTC Derivatives

Answer 38

``` Interest rate swaps 450 tn Forward rate agreements 70 Foreign exchange contracts 70 Forward forex swaps 30 Currency swaps 25 Options 20 All from lower than 50 by 98 ```

Question 39

Market cap 2016

Answer 39

``` NYSE 18 tn Nasdaq 7.5 tn Japan 5 tn Shanghai 4 tn ... Shenzhen 3.5 tn ```

Question 40

Growth in Market Cap | 2004-16

Answer 40

``` Shenzhen 2200% Shanghai 1200 Philippine ... NYSE 48 ```

Question 41

Potential

Answer 41

``` CAP to GDP Phillipines 105 US 102 UK 129 Germany 47 direct finance China 76 ```