McCabe+Genre5

Q&A
I want to pursue a career that is rewarding and challenging. I enjoy digging deep into analysis and learning a lot about a company/industry, especially in the context of a pending deal. I am a driven individual and entering banking will surround me with other hard workers.
 * Why do you want to go into banking?**

Although many careers have hard workers, banking specifically avoids the “40 hour a week” office mentality. It is very merit based and I know I can produce in pressure situations. The work seems engaging and again, I have a high level of interest specifically in learning about transactions.
 * I could say that about a dozen jobs. Why banking specifically?**

The four main ways to value a company include discounted cash flow (DCF) analysis, comparable company analysis, comparable transaction multiples, and leveraged buyout (LBO) analysis.
 * What are the different ways to value a company?**

Transaction multiples typically produce a higher valuation because the buyer is paying a “control premium” – the buyer pays extra to purchase a controlling number of shares compared to the public markets where buyers are investing minority stakes in the companies.
 * Which comparable method produces a higher valuation and why?**

A DCF involves first forecasting the free cash flows of the business for a certain period of time, for example five years. After this period of time, we must calculate a terminal value. This represents our estimate of the value at year five of all future cash flows of the business. Finally, we need to turn all these future cash flows into a “present value”. To do this we discount all cash flows at the weighted average cost of capital.
 * Walk me through a DCF in 15 seconds**

Free cash flow is EBITDA, less tax, less capital expenditure, plus/minus changes in net working capital.
 * How do you calculate free cash flow?**

When working capital increases things such as inventory will increase, A/R will increase, and A/P will decrease. All of these items do not impact the income statement, but they do decrease cash (you pay cash for inventories, you pay cash to decrease A/P, and you get less cash than sales dollars when A/R increases). You must account for these decreases when thinking about total free cash flow.
 * Why do you subtract increases in working capital when calculating free cash flow?**

WACC stands for the weighted average cost of capital. It is the discount rate typically used to bring cash flows to a present value in a DCF model. It represents the blended cost of capital to debt and equity holders. The formula for WACC is (cost of equity) * (% equity) + (cost of debt * (1-tax rate)) * (% debt).
 * What is WACC?**

We calculate cost of equity using a model such as CAPM. The CAPM states that the cost of equity is the risk free rate plus the company’s beta times the market risk premium. Risk free rate is generally a long term US treasury rate and beta is the company’s riskiness compared to the overall market.
 * How do you calculate cost of equity?**

This depends. Typically, terminal value is a larger part of the value calculation for a firm because it takes into account all future years of the business as opposed to just five future years. However, forecasted cash flows are sometimes a larger component of value. For example, a startup may have an extremely high discount rate so its cash flows after five years have little value. Another example is a pharmaceutical company that has expiring patents and thus very few projected cash flows after the forecasted period.
 * What is a larger part of the value, forecasted cash flows or terminal value?**

There are two main ways to calculate terminal value. One is to use a terminal multiple. We look at a metric (such as EBITDA) in our year five projections and multiply it by an appropriate multiple. We can find this
 * How do you calculate terminal value?**

multiple by using comparable public companies. Alternatively, we can use the perpetuity growth method. We assume a growth rate beyond the projection period and multiply this by year 5’s cash flow. We then divide this number by (discount rate – growth rate). Our full terminal value equation is TV=CF(yr5)*(1+g)/(r-g).

Example: How do you go about working together in terms of studio time?

> **Loadstar: Each track seems to come together in a different way, but due to our work load its very rare for us to work on a track from start to ﬁnish together, so occasionally we have to divide our time and work. It works fine for us, we know how each other work and we can use this to our advantage, work on ideas separately and then bring it all together in our studio in Bristol.**

Example: Do you feel that the upcoming e.p embodies both of your individual styles?

> > **Loadstar: I think its a great example of how combining our sounds brings the best results. We wanted to approach ‘Space Between’ like a song structure, a musical vocal lead intro, followed by the chorus which acts as the main ‘drop’ and taking it in a different direction. It shows what we are all about, Nick has always had a strong musical edge to his solo tracks, and Gav has always proved he can smash the nuskool dancefloor sound, I think this track came together well as it embodies both of these elements.** **Blvd combines our sounds and ideas well, we have always loved using samples in an interesting way and this track just seems to 'flow' with its oldskool beats and raw feel. We both got into drum and bass at a similar time when the majority of our favourite tunes used old skool breaks and simple grooves so we also tried to capture that feel to it.**

Example: What can we expect in terms of live performances from Loadstar?

> **Loadstar: We have a very hectic DJ schedule up to the album release and a few festivals over the summer so you will be able to catch us up and down the country and across Europe in the coming months. Once the album is done we are going to put together a live show, something we are really excited about and we are currently putting it all together... so keep a look out for that in the Autumn.**

Example: You have both have experience producing individually and of course as as pair, do you

prefer working together or separately?

> **Loadstar: We deﬁnitely prefer working as a team as our best tracks come together with both our heads together. Its not always easy, even after working together for years! However as Loadstar we feel we are writing our most exciting music to date.**

Example: Can we expect anything in the way of solo projects in the near future?

> **Loadstar: We are fully focussed on the Loadstar project and taking that as far as we can so any solo projects are on hold for now!**

A: I’m so blessed to be part of a team that has such high character and fights to the very end. As a team, we try to encourage each other to believe until the very end. My teammates do a great job of encouraging me. [[image:http://www.nypost.com/rw/nypost/2011/12/15/sports/web_photos/tim_tebow--300x300.jpg width="300" height="300" caption=" "]] GETTY IMAGES Tim Tebow A: Several things. What drives me is in everything I do, I want to do it all through the glory of God. I want to give everything I have to glorify the Lord for what He’s blessed me with and to make the most of my talent. I also want to make my family proud and represent the Tebow name. I want to make my teammates proud, and I want to win for my teammates and coaches. A: I liked watching Steve McNair because he was extremely tough and you could tell everyone followed him. He was a great leader. I liked watching Steve Young because he was very athletic and is left-handed. I like watching Tom Brady because he is so precise at what he does and is able carve defenses up. I like watching Peyton Manning because he is a great player who has mastered the cerebral parts of the game. A: I’m a young quarterback who constantly works and tries to get better every single day. I trust my teammates that we are going to go out there and play together as a team. I am very blessed to have teammates who make me look a lot better than I really am. A: I try to find a peace and a calmness and a motivation to do whatever it takes and to try to find a way to go out there and play for my teammates and get it done. I try to show character and fight until the very end. Starting strong but always finishing stronger. I think that has a lot to do with your character and your training and what you put into it. You always want to finish stronger than you started. A: It has its pros and cons. Obviously, I’d like to go out with friends and family and have a nice, private dinner. That can sometimes be hard. But, there are many positive things that come with that recognition. I can walk into a hospital room and can share with kids and have an impact on them. Or, you can meet amazing people like Kelly Faughnan, a very special and courageous girl that I’ll host at Sunday’s game. Ultimately, that platform is a lot more important than the few people who may approach you when eating dinner. Sometimes, you can also have a great effect on those people by treating them kindly or saying nice words, encouraging them or just saying God bless them. [|Next >]
 * Q: How does Tim Tebow get his teammates to believe, especially when the game is on the line?**
 * Q: What drives you?**
 * Q: Which quarterbacks do you enjoy watching, current or old, and why?**
 * Q: Give me an up-to-date scouting report on Tim Tebow the quarterback.**
 * Q: What are you feeling inside when the game is on the line?**
 * Q: How do you feel about and how do you handle the lack of privacy when you are out to dinner or out in general? Have there been any bothersome or funny incidents?**

Criteria: Ask a simple question or one with more detail answers that are not to drawn out but have some content to them questions that have some kind of purpose

Charateristics: Bold the questions ask questions that need answers make the interview purposeful