This is a 5 page paper excluding the reference page. This paper has be written in Microsoft word with a font size 12 and times new roman. All the materials needed to write the paper will be attach with the question. All the bullet points in the Description and questions section must be address. Description and questions:Automatic Data Processing, Inc. (ADP) and Bill.com Holdings, Inc. (Bill.com) provide back-office services to business. Although their product offerings and customer bases differ in some ways, the key drivers of their success are largely the same. The objective for this paper is to demonstrate how the companies financial statements reveal those key drivers.ADPs 2019 10-K and Bill.coms initial public offering are listed as attachments. You may use additional sources of information if you like.1) Briefly describe the companies primary product offerings. Use the business description sections and managements discussion and analysis sections, as well as the companies disclosures about segments.2) Describe ADPs dividends and share repurchases.a) How much did ADP pay in dividends in fiscal 2019, in total and per share?b) How much stock did ADP repurchase, in dollars, shares, and as a percentage of shares outstanding at the beginning of the year?c) ADP was founded in 1949. Suppose ADP continues to operate for another 70 years and its discount rate is 3.5%. If ADP pays the same amount in dividends and repurchases to investors as it did in fiscal 2019 every year for the next 70 years, what is the present value of those payments? Compare this present value to the market value of the common stock stated on the title page of the 10-K.3) Describe Bill.coms initial public offering.a) How much did stock did Bill.com issue in shares and dollars, in total and as compared to the amount of outstanding?b) How does the company plan to use the proceeds from the sale of stock?c) Based on the stock price at the initial public offering, the market value of Bill.coms common stock was approximately $1.56 billion. Suppose Bill.com continues to operate for the next 70 years and its discount rate is 3.5%. If Bill.com pays the same amount in dividends and repurchases to investors every year for the next 70 years, how much must it pay investors each year to justify this valuation of the common stock?4) ADPs largest liability is its Client funds obligations.a) What is this liability? To whom is the liability owed? How does the liability get created and how does the company pay off this liability?b) How does having this liability benefit ADP?c) What are the risks of having this liability and what does ADP do to reduce those risks?5) Bill.coms largest liability is its Customer fund deposits.a) What is this liability? To whom is the liability owed? How does the liability get created and how does the company pay off this liability?b) How does having this liability benefit Bill.com?c) What are the risks of having this liability and what does Bill.com do to reduce those risks?6) Based on your analyses of ADPs Client funds obligations and Bill.coms Customer fund deposits, what must these companies do successfully in order to remain in business for the next 70 years and pay steady dividends over that time?.
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