How does teletech corporation currently use the hurdle rate

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Reference no: EM133334501

Questions:

1. How does Teletech Corporation currently use the hurdle rate?

2. Please estimate the segment WACCs for Teletech (see the worksheet in case Exhibit 1). As you do, carefully note the points of judgment in the calculation.

3. Interpret Rick Phillips's graph (see case Figure 2). How does the choice of constant versus risk-adjusted hurdle rates affect the evaluation of Teletech's two segments? What are the implications for Teletech's resource-allocation strategy?

4. Do you agree that "all money is green"? What are the implications of that view? What are the arguments in favor? What are the arguments against it?

5. Is Helen Buono right that management would destroy value if all the firm's assets were redeployed into only the telecommunications business segment? Why or why not? Please prep a numerical example to support your view.

6. Has Products and Systems (P+S) destroyed value? What evidence or illustrations can you give to support your opinion?

7. What should Teletech say in response to Victor Yossarian?

 

Reference no: EM133334501

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