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Raymond James Interview Questions

This bank spans restructuring, industrials, consumer and real estate, so I would start with the statement math and the leverage questions. These 5 Raymond James interview questions have worked answers. No signup.

Recorded roundGroup mappedWorked answers
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Three worked answers

Statement math first, then the leverage

The open examples cover a PP&E purchase through Year 1, an EBITDA margin hidden in two multiples, and what an LBO structure actually covers.

01
First RoundRestructuringAccounting

Walk PP&E through Year 1

You bought $100 of PP&E in cash. Assuming 10-year depreciation and a 40% tax rate, walk me through the statements after Year 1.

Say your answer first. Then reveal the steps and check the assumptions.

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Assume zero salvage, no operating earnings, matching tax depreciation and an immediately usable tax deduction. Year 1 depreciation = 100 / 10 = 10.

Income statement

EBIT and pre-tax income -10, cash taxes -4, net income -6.

Cash flow statement

CFO = net income -6 plus D&A 10 = +4. The +4 is the tax saving, not revenue generated by depreciation.

Balance sheet

During the year: cash +4, PP&E -10, assets -6, retained earnings -6. Including the original purchase: cash -96, net PP&E +90, total assets -6.

Interview check: state your assumptions before the numbers. Without the usable tax deduction, net income and equity fall the full 10 and cash stays flat.

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02
SuperdayIB (Consumer / Industrials)Valuation & Multiples

Get the margin from two multiples

EV/Revenue 2x and EV/EBITDA 10x - what's the EBITDA margin? Why do we use the mid-year convention in DCFs?

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For a common EV and period, EBITDA margin = (EV/Revenue) / (EV/EBITDA). The EV cancels; no industry average needed.

EBITDA margin2x / 10x20%
Mid-year convention(1+WACC)^(t-0.5)higher PV than year-end timing

Interview check: mid-year timing assumes operating cash arrives through the year rather than all on December 31. Terminal-value timing must match the convention; a year-end sale value is not automatically a mid-year receipt.

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03
SuperdayIB (Consumer / Industrials)Restructuring

Check what the leverage covers

LBO math: $100M EBITDA at 10x is a $1B purchase, 6x levered with $400M 1L and $200M 2L - what is each tranche trading at?

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Reveal the worked answer

Assume the stated EV is distributable operating value, with no excess cash, fees, priority claims or accrued interest, and enforceable ranking. These are static recoveries, not predictions of actual trading prices.

Purchase EV100 x 10$1,000M
Funded debt400 + 200 = 6006x EBITDA
Sponsor equity1,000 - 600$400M

Interview check: both the $400M first lien and the $200M second lien are covered at par at this valuation, with $400M of static residual equity beneath them. Do not mark the second lien at a discount just because the acquisition is leveraged. Actual pricing still depends on coupon, maturity, default risk and liquidity.

More questions

Two more prompts stay closed until you commit to an answer. Round and group labels come from the workbook source, not a fixed interview script.

First RoundRestructuringDebt & Leveraged Finance

4. What is PIK interest? Walk $100 of 10% PIK debt through the statements after Year 1 (40% tax rate).

Check the worked answer

PIK interest is paid in kind: it accrues to the debt balance instead of being paid in cash. Assume annual capitalization, no fees, and the interest deductible now with immediately lower cash taxes. Interest = $100 x 10% = $10. Income statement: pre-tax income -10, taxes -4, net income -6. Indirect cash flow: net income -6 plus the $10 noncash PIK gives CFO and cash +4 relative to the no-interest baseline.

Balance sheet: cash +4, debt +10 to $110, retained earnings -6, so assets +4 equal liabilities plus equity +4. Capitalization brings no new principal cash inflow. If the tax benefit is deferred instead of current, a deferred-tax asset rises $4 in place of cash; with no tax benefit, net income and equity fall the full 10.

SuperdayReal Estate IBValuation & Multiples

5. How would you value a property?

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For an income property, estimate stabilized NOI: rent and ancillary income less vacancy and property operating costs, before debt service and usually before depreciation. Direct capitalization gives asset value = NOI / cap rate: NOI of $1M at a 5% cap rate implies $20M. Cross-check with recent comparable sales and a lease-by-lease DCF after maintenance, tenant improvements and leasing costs, because NOI is not distributable free cash flow.

Equity value equals asset value minus debt plus other net assets. For a REIT, sum property market values and deduct net debt and other claims for NAV, then compare price/NAV and price/FFO or AFFO with consistent definitions. A high FFO yield need not mean cheap if the properties require large reinvestment.

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The full workbook

The paid file contains 54 source prompts collected from 2020 onward: 40 worked answers, 12 practice frameworks and 2 research checklists. Every prompt has a recorded round. Filter by round, group, type, and topic.

Rounds: First Round 18, Second Round 6, Superday 30.
Groups: Restructuring 17, IB (Consumer / Industrials) 15, IB (Diversified Industrials) 11, Real Estate IB 7, Consumer 4.
Largest topics: Behavioral 11, then Valuation & Multiples 10 and Accounting 9.

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