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Morgan Stanley Investment Banking Interview Questions

5 firm-labeled workbook prompts. Three fully worked examples are open below; use the reveal drill for the rest. No signup.

Recorded roundTechnical topicsWorked answers
See the worked examplesGet the free sampler: 15 questions, all workedGet the full workbook

Morgan Stanley HireVue, First Round, and Superday

Use the workbook by stage:

HireVue

Record one answer in 90 seconds and lead with the conclusion.

First round

Pair one credit or markets question with one core technical question.

Superday

Run three mixed questions, then repeat the least clear answer.

Three answers, open

See how the answer gets built

Read the setup, work the steps, then say the answer cleanly.

01
SuperdayBrain Teasers & Math

Two mental-math shortcuts

What is 29^2? What is the square root of 9,801?

Work from round numbers rather than multiplying longhand.

29 squared

(30 - 1)² = 900 - 60 + 1 = 841.

Square root

99² = (100 - 1)² = 10,000 - 200 + 1 = 9,801.

Answer

29² = 841 and √9,801 = 99.

02
UnspecifiedEV & Equity Value

Why a dividend leaves EV unchanged

Given EV component values - how does using cash to pay dividends impact EV?

Cash and equity value fall together in the enterprise-value bridge.

Before

EV = equity value + debt - cash.

Dividend

Paying a dividend reduces cash and equity value by the same dollar amount.

Conclusion

The lower equity value and lower cash offset each other, so enterprise value does not change.

03
SuperdayDCF & WACC

Choose the value produced by the cash flow

What is the ending value of a DCF if you used levered FCF instead of unlevered FCF?

The cash-flow definition and discount rate must match.

Cash flow

Levered free cash flow is after interest and belongs to equity holders.

Discount rate

Discount levered FCF at the cost of equity.

Output

The DCF produces equity value. Discounting levered FCF at WACC mixes claims and does not produce a meaningful enterprise value.

More questions

The remaining prompts stay closed until you commit to an answer. Round labels come from the workbook source, not a fixed interview script.

First RoundMarkets & Deals

1. If your credit card interest rate increases (or decreases), would you spend more or less?

Check the worked answer

Increase -> spend less (borrowing costs more, consumers pay down balances). Decrease -> spend more (cheaper credit). This is the transmission of monetary policy to consumption.

UnspecifiedDebt & Leveraged Finance

2. What happens to the cost of debt as a company's credit rating improves?

Check the worked answer

It falls: higher ratings signal lower default risk, so lenders demand narrower credit spreads over Treasuries (and more investors can buy it, e.g., investment-grade mandates), lowering the yield on new debt and WACC.

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