123 Investment Co

Case Study Prompt

Your client is the treasurer of a significantly privately-held corporation. She is in charge of managing a portfolio of investments in addition to her treasury responsibilities. Recently, she sought your advice about the purchase of a large position in company 456, whose stock is listed on the NYSE.

Company 456 is currently selling for $22 per share. The treasurer’s investment analyst predicts that the stock will pay a dividend of $1.25 for the foreseeable future.

Short-term Treasury bills are yielding 7 percent, and long-term T-bills are yielding 8 percent. The treasurer is contemplating the purchase of 5,000 shares of company 456 and wants your help in determining a fair market price.

How would you assess fair market price?

Case Study Overview

Your client is facing an investment decision, and in this Oliver Wyman case study, it’s up to you to dig into the numbers and recommend a solution.

Want to prepare for a first round Oliver Wyman interview? While you can use the Profitability Framework to solve this case, It is recommended that candidates blend frameworks and their own industry knowledge to create a custom framework.

There are no math exhibits in this case. The qualitative difficulty is 1 out of 4, which makes this a beginner level case interview you would likely see in an Oliver Wyman first round.

Oliver Wyman Interview Tips

What does Oliver Wyman look for in its case interview candidates? A logical problem-solving process and quant proficiency.

If you are struggling with the math portion of the case, our math drills may be a helpful resource for shoring up your quant skills.

In this case, focus on coming away with 1 key takeaway or area you can improve in the case.

For out-loud practice with an expert, book an hour with an ex-MBB coach.