Power‚ without a doubt‚ is one of the strongest desires of any person. To be in power‚ and to control other people is a feeling like no other. It is this feeling that gets in the way of peoples ability to think straight‚ and as a result misuse the power. Power in the wrong hands can be catastrophic‚ as demonstrated in Catch-22‚ written by Joseph Heller. This novel develops the theme of power through‚ the bureaucracy‚ Colonel Cathcart‚ and the syndicate. The bureaucracy is the most evident
Premium Catch-22 Yossarian
Case 15 Version 2.1 Teletech Corporation‚ 1996 Teaching Note Synopsis and Objectives In January 1996‚ the chief financial officer of this telecommunications company must fashion a response to a raider who claims that a major business segment of this company should be sold because it is not earning a satisfactory rate of return. The case recounts the debate within the company over the use of a single hurdle rate to evaluate all segments of the company versus a riskadjusted hurdle-rate
Premium Weighted average cost of capital
Teletech Corporation‚ 2005 Kyle Fortin My recommendation for Teletech Corporation is to change from a constant hurdle rate to the use of two risk-adjusted hurdle rates‚ one for each segment. Teletech’s performance is evaluated based on economic profit calculations. Through this measure‚ the risk-adjusted hurdle rates return a higher amount of profit compared to a single corporate hurdle rate. Currently‚ the firm has been using 9.30% as their hurdle rate‚ and as a result the firm’s share prices
Premium Investment Rate of return Finance
CASE STUDIES IN FINANCE CASE 3: TELETECH CORPORATION 2005 Q1. Teletech has two divisions- Telecommunications and Products & Services. For the purpose of investment and performance analysis at the firm‚ there is an applied hurdle rate of 9.30% for both divisions. Based on the firms’ WACC‚ this rate represents the cost of capital‚ and essentially‚ the opportunity cost of money. Teletech Corporation uses this hurdle rate to assess the performance of its two divisions; however there is argument
Premium Weighted average cost of capital Investment Finance
she found out that Yossarian acquired 10% of the company’s stock. This aggressive move by Yossarian was motivated by the company management not doing their job to maximize shareholders wealth. Moreover‚ the managers were having issues with the hurdle rate‚ because it is just generally accepted‚ but not scientifically proven. On the other hand one TV Commentators opinion about Teletech Corp. is that “there is no way to have a hostile takeover in this sector‚ but for the Teletech Corp. there are many
Premium Weighted average cost of capital
Captain Black finds it impossible to see things outside of black and white‚ he sees everything in binary. Anything at all that is not American‚ he fears. Anything related to a utopian society or Nazism is automatically labeled by Captain Black. Because of his black and white point of view‚ Captain Black is seen as a troublemaker. He does not have any desire to hear the pros and cons of things. In an argument he would be the kind of person that votes Democrat because that is “the best choice”. If
Premium Catch-22 Yossarian
Analysis Teletech is a business process outsourcing multinational Organization‚ founded in 1982 by Kenneth D.Tuchman and headquartered in Englewood‚ Colorado. Teletech provides services for customer management‚ transaction-based processing‚ database marketing services‚ professional sales and eCommerce. Teletech operates in diverse industries of Automotive‚ Communications and Media‚ Financial Services‚ Government Services‚ Healthcare Services and Technology. The firm is based in 17 countries with
Premium Investment Net present value Profit
1. Teletech Corporation currently uses its hurdle rate to measure its economic profit and NPV. It is used to measure value creation‚ and providing information on each unit’s performance for investors. Teletech’s current practice of “one size fits all” hurdle rate is not the best practice because each division has its own risks and nature of operations. Therefore‚ each division’s profitability should be compared to that division’s own WACC. 2. See attachment 3. According to Rick Phillip’s
Premium Investment Finance Profit
1. The top management of Teletech Corporation was applying 9.30% as a hurdle rate to all capital projects and as a performance evaluation‚ regardless of the business units. 2. Corporate Telecommunications Services Products and Systems MV asset weights 100% 75% 25% Bond rating A- / BBB+ A BB Pretax cost of debt 5.88% 5.74% 7.47% Tax rate 40% 40% 40% After-tax cost of debt 3.53% 3.44% 4.48% Equity beta 1.15 1.04 1.39 Rf 4.62% 4.62% 4.62% Rm
Premium Investment Finance Rate of return
Introduction The Teletech Corporation is a “provider of integrated information movement and management”‚ as it defined itself. It had two main business segments: the first one was Telecommunications Services‚ which provided long-distance‚ local‚ and cellular telephone service‚ accounted for 75% of the market value of the firm; the second one was the Products and Systems segment‚ which produced computing and telecommunications equipment‚ accounted for other 25% of the market value of the firm. The
Premium Weighted average cost of capital Finance Risk aversion