Richa Motwani

Hi everyone,

This Friday, I’m releasing a long-form video on a Finance Analyst 1-hour test that was recently asked for a VC Analyst role.

The candidate had to complete the analysis in person, within the given time limit.

In the video, I’ll break down how to approach the test, structure the analysis, and think through it like an analyst.

This should be useful if you are preparing for finance analyst, IB, VC, PE or corporate finance roles.

I’m planning to create more such videos around real finance tests, case studies and interview-style assignments.

Comment YES (or like this Post) if this would be useful I’ll take that as a sign to make more real finance test / case study breakdowns.

1 week ago | [YT] | 82

Richa Motwani

3 Statement Modelling Workshop alert 🚨

If you have been watching my videos and always wanted to go deeper — this is that session.


I am running an interactive workshop for a limited batch of serious aspirants who understand P&L, Balance Sheet and Cash Flow but struggle with assumptions, how to structure data and how to actually link the statements.


📅 July 4 / 5 Weekend or Jul 11/12 Weekend
⏱ 5–6 Hours | Live Session
🪑 Limited Seats


All details are in the form — give it a read before filling in.

forms.gle/u6jvveYTaLxxTw9s9


Registrations close on 25th June.

2 weeks ago | [YT] | 15

Richa Motwani

Hey everyone, I need your vote again

On what topics or concepts I should start a question series next for next 15 days?

Please drop your comments -

Should I continue with ER / IB series covering concepts like finance, accounting, valuation and modelling, industry metrics or any other topics

4 months ago | [YT] | 6

Richa Motwani

Equity Research Interview Question (30/30)

A company generates a 15% unlevered IRR. It finances the transaction using debt at 7%. What would you generally expect?

A. Levered IRR will be lower than 15%
B. Levered IRR will equal 15%
C. Levered IRR will be higher than 15%
D. Levered IRR cannot be compared to Unlevered IRR

4 months ago | [YT] | 10

Richa Motwani

Equity Research Interview Question (29/30)

What is the difference between Unlevered IRR and Levered IRR?

A. Unlevered IRR measures business return independent of capital structure; Levered IRR measures equity return after debt.

B. Levered IRR measures business return independent of capital structure; Unlevered IRR measures equity return after debt.

C. Both measure the same return but use different discount rates.

D. Levered IRR ignores interest expense; Unlevered IRR includes it.

4 months ago | [YT] | 7

Richa Motwani

Equity Research Interview Question (28/30)

Could the book equity of a company be negative for years?

Options:

A. Yes, but it’s a sign of distress and the company will eventually have to shut down.
B. No, book equity cannot be negative.
C. Yes, and for some companies it’s a sign of distress, but it is possible even for a good profitable companies.

4 months ago | [YT] | 12

Richa Motwani

Equity Research Interview Question (27/30)

You are sitting in an interview.

The interviewer asks:

Suppose you are valuing a listed company (not loaded with debt) primarily focused on staple food products such as milk, wheat, and rice.

Would you expect the company’s Beta typically to be ?

4 months ago | [YT] | 11

Richa Motwani

Equity Research Interview Question Series (26/30)

Again, this question was asked to my mentee in her latest interview.

Why did you regress Beta using 3 years of company stock data, but use the 10-year government bond yield for Rf?

A. Beta should reflect the company’s recent operating and financial risk, but at the same time the regression needs sufficient observations for statistical reliability; hence 3–5 years is common.

B. The risk-free rate should match the long-term horizon of projected cash flows, and short-term government bonds introduce reinvestment risk ; therefore a long-term bond yield is preferred.

C. CAPM assumes a 10-year investment horizon, so the risk-free rate must also be 10 years.

D. Beta must always be calculated over exactly 3 years to properly capture one full market cycle.

E. Beta must be regressed using 5 years of data

4 months ago | [YT] | 7

Richa Motwani

Equity Research Interview Question Series (25/30)

This was asked recently to one of my mentees in an interview, so thought to post here.

What is Gross Margin? Easy right!

Gross Margin = (Revenue − Cost of Goods Sold) / Revenue

But how would you define this for SaaS industry ( mind it you need to be careful for service industry)


A. Gross margin in SaaS represents revenue remaining after deducting product development and customer acquisition costs.

B. Gross margin in SaaS represents the percentage of subscription revenue remaining after deducting costs directly incurred to host, maintain, and support the software platform.

C. Gross margin in SaaS represents cash generated from subscriptions after adjusting for non-cash expenses.

4 months ago | [YT] | 8

Richa Motwani

Equity Research Interview Question Series (24/30)

A company has met quarterly EPS guidance almost exactly for 12 consecutive quarters.
Margins and revenue growth are stable, and management claims predictable and excellent execution.

What should an equity analyst consider?

A. Smooth earnings always mean strong management
B. Extremely low volatility can sometimes indicate accrual management or guidance engineering
C. It is impossible to manage earnings
D. Guidance accuracy removes the need for diligence

4 months ago | [YT] | 13