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2 years ago

Describe how Kabbage might evaluate the existence and completeness of an applicant’s revenue transactions.

Business

1 answer:

elena55 [62]2 years ago

3 0

Explanation:

Disruptive technology, new business ventures, and increased availability of data are quickly changing traditional financial reporting and assurance processes. As a result, prospective auditors not only need to understand fundamental auditing concepts, but also need to anticipate the influence that disruptive technology will have on the profession. The following case study provides a lens through which prospective auditors can view the coming changes to the profession by asking them to consider how the online lending company, Kabbage, is currently disrupting the lending industry for non-traditional and small businesses. Students contemplate several fundamental auditing concepts such as audit evidence, financial statement assertions, and analytical procedures while also acquiring insight into the effects that new and disruptive technology will have on the profession. The intention is to encourage students to embrace coming changes and become lifetime learners.

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A company currently pays a dividend of $2.8 per share (D0 = $2.8). It is estimated that the company's dividend will grow at a ra

Vinil7 [7]

Answer:

Intrinsic value: 53.41 dollars

Explanation:

First, we use the CAPM model to know the value of the stock

$Ke= r_f + \beta (r_m-r_f)$

risk free 0.085

premium market =(market rate - risk free) = 0.045

beta(non diversifiable risk) 1.3

$Ke= 0.085 + 1.3 (0.045)$

Ke 0.14350

Now we need to know the present value of the future dividends:

D0 = 2.8

D1 = D0 x (1+g) = 2.8 * 1.23 = 3.444

D2 3.444 x 1.23 = 4.2361200

The next dividends, which are at perpetuity will we solve using the dividned grow model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

In this case dividends will be:

4.23612 x 1.07 = 4.5326484

return will be how return given by CAPM and g = 7%

plug this into the Dividend grow model.

$\frac{4.5326484}{0.1435 - 0.07} = Intrinsic \: Value$

value of the dividends at perpetity: 61.6686857

FInally is important to note this values are calculate in their current year. We must bring them to present day using the present value of a lump sum:

$\frac{Principal}{(1 + rate)^{time} } = PV$

$\frac{3.444}{(1 + 0.1435)^{1} } = PV$

3.011805859

$\frac{4.23612}{(1 + 0.1435)^{2} } = PV$

3.239633762

$\frac{61.6686857}{(1 + 0.1435)^{2}} = PV$

47.16201531

We add them and get the value of the stock:

53.413455

5 0

3 years ago

People bring their abilities, goals, and experiences to each and every situation, which often changes the situation. Conversely,

kobusy [5.1K]

Answer:

interdependent person and situation factors.

Explanation:

Interpendent person refers to the type of person who realize that each individuals have their own negative and positive attributes, including themselves. This type of person realize that people need to rely on each other in order to cope with the negative attributes that they have.

Situation factors refers to a characteristic that might make a certain situation become unique from another.

Often time, an individual can be effective in handling a certain situation , but extremely inefficient when handling other situation. This happen because they have different abilities/experiences that added to their positive attribute. In order to survive a situation that they can't handle really well, people need to learn to become interdependent person.

7 0

3 years ago

WesternBioLabs Inc. is in the process of laying off 10% of its shipping and receiving employees. At the same time, it is hiring

igomit [66]

Answer:

A. Churning

Explanation:

Employee Churning is also known as employee turn-over which is an act of laying off employees while recruiting new ones. It is a measure always taken to conserve a company's limited resources. The turnover rate is given as the percentage of employees being laid off or leaving workers over a period of time. There are a lot of factors contributing to churning such as downsizing through attrition either due to recession or scarcity of company's resources.

5 0

3 years ago

A process control system costs $200,000, has a three year service life, and a salvage value of $20,000. Find the depreciation an

Advocard [28]

Answer:

Depreciation expense each of the three years would be $60,000

Book value at the end of year 1 = $140,000

Book value at the end of year 2 =$80,000

Book value at the end of year 3 = $20,000

Depreciation expense in year 1 =$90,000

Depreciation expense in year 2 =$60,000

Depreciation expense in year 3 =$30,000

Book value at the end of year 1 =$110,000

Book value at the end of year 2 = $50,000

Book value at the end of year 3 = $20,000

Depreciation expense in year 1 = $133,333.33

Book value at the end of year 1 = $66,666.67

Depreciation expense in year 2 = $44,444.45

Book value at the end of year 2 = $22,222.22

Depreciation expense in year 3 = $14,814.16

Book value at the end of year 3 = $7,407.40

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($200,000 - $20,000) / 3 = $60,000

Depreciation expense each of the three years would be $60,000

Book value at the end of year 1 = $200,000 - $60,000 = $140,000

Book value at the end of year 2 = $140,000 - $60,000 = $80,000

Book value at the end of year 3 = $80,000 - $60,000 = $20,000

Sum-of-the-year digits = (remaining useful life / sum of the years ) x (Cost of asset - Salvage value)

Sum of the years = 1 + 2 + 3 = 6 years

Depreciation expense in year 1 = (3/6) x ($200,000 - $20,000) = $90,000

Depreciation expense in year 2 = (2/6) x ($200,000 - $20,000) = $60,000

Depreciation expense in year 3 = (1/6) x ($200,000 - $20,000) = $30,000

Book value at the end of year 1 = $200,000 - $90,000 = $110,000

Book value at the end of year 2 = $110,000 - $60,000 = $50,000

Book value at the end of year 3 = $50,000 - $30,000 = $20,000

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2/3

Depreciation expense in year 1 = (2/3) x $200,000 = $133,333.33

Book value at the end of year 1 = $200,000 - $133,333.33 = $66,666.67

Depreciation expense in year 2 = (2/3) x $66,666.67 = $44,444.45

Book value at the end of year 2 = $66,666.67 - $44,444.45= $22,222.22

Depreciation expense in year 3 = (2/3) x$22,222.22 = $14,814.16

Book value at the end of year 3 =$22,222.22 - $14,814.16 = $7,407.40

4 0

3 years ago

G why is the future value always more than the present value?

olya-2409 [2.1K]

The future value is always more than the present value because the value of the dollar can be higher in the next day. plus it can be adding the interest in the future value.

3 0

2 years ago