AI for Investment Banking Pitch Books Quiz

Answers and explanations appear as you take the quiz.

1. How does the guide describe building enterprise value consistently for a comps table?
   • Market capitalization plus cash minus debt
   • Equity value plus debt, preferred stock and noncontrolling interests, minus cash
   • Revenue multiplied by the sector average multiple
   • Book value of equity plus retained earnings
2. Why do bankers calendarize financials when building comps?
   • To convert all figures into U.S. dollars
   • To remove non-recurring items
   • To estimate the target's future share price
   • To align companies with different fiscal year-ends to the same period
3. How should a comps table show an EV/EBITDA multiple for a company with negative EBITDA?
   • As "NM" for not meaningful
   • As a negative multiple
   • As zero
   • As the peer median
4. Why does the guide recommend linking slide figures to model cells instead of pasting values?
   • Linked cells use less file storage
   • Clients require live links
   • A change in the model updates every slide, so figures don't go stale
   • Pasted values cannot be formatted
5. Which method does the guide say is usually used to calculate diluted share counts?
   • The straight-line method
   • The treasury stock method
   • The equity method
   • The percentage-of-completion method
6. Which part of pitch book work does the guide say remains a judgment call a senior banker must defend?
   • Checking font consistency
   • Numbering footnotes
   • Aligning logos on slides
   • Choosing the peer set and deciding which outliers and adjustments to apply
7. How does the guide characterize tools like Macabacus and UpSlide?
   • Office add-ins that link Excel to PowerPoint and enforce formatting, not mainly generative models
   • Generative models that write full pitch books on their own
   • Licensed financial databases
   • Regulatory filing systems
8. According to the guide, what should be stored with every figure pulled into a comps table?
   • The analyst's confidence rating
   • The model's temperature setting
   • Its source and as-of date
   • The client's code name