S3E6: Capital One Case Interview Example
Strategy Simplified
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How to Calculate the Cost of Default
All right. Let me just cover all the revenues first and then we'll go into the cost. So looking at the transaction fees, that would be about 2.3 billion. Now we're done with interest fees. That's 1.8 billion. And finally looking at the cost of default. This would be if I take it, this would be about a million customers. Is that right? 5% of the customers Yeah. Oh, yeah. Sorry. You can do that for the annual fees. Okay. What's 200 times a million? That is 2 billion. The second scenario where we take the only the transaction and the interest fees as the revenue, remove annual fees and then
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