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
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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 reasons to try.” Teletech Corp. has two major business segments‚ Telecommunication Services and both Product and System Manufacturing make up the other segment we will analyze. The ROC of both the segments
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Teletech Corporation Background of the case Victor Yoarian‚ a reclusive billionaire had acquired a 10 percent stake of a telecommunications company named Teletech Corporation and has demnded two seats on the firm’s board of directors. Headquartered in Dallas‚ Texas defines itself as a “provider of integrated information movement and management.” The firm had two main business segments: Telecommunications Services‚ which provides long-distance‚ local and cellular telephone service to business
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Helen Betty Osborne was attacked by “white” men because she was seen as an easy target because of her identity was an aboriginal women. She was abducted by these four men while she was walking‚ presumably home‚ when she was raped then killed with a screwdriver. The case a significantly not only because this attack was because of her race but her race also played a role on the investigation from the RCMP. Because there was no lead on the investigations for a while the police dropped the case. Sixteen
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Case Study 1- Volcanic eruption at MEDC Volcanic Eruption at Mount St Helens LOCATION Washington State‚ North West U.S.A. The Rocky Mountains CAUSE | |This area is located on a destructive plate boundary | | |N. American Plate (continental crust) and Juan de Fuca plate (Pacific plate(oceanic crust) collided – a subduction zone | |
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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
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Case Study 3: Estimating the Cost of Capital 1. Currently Teletech Corporation (TC) uses a single hurdle rate for both their Telecommunications Services (TS) and Products and Services (P&S) divisions. This hurdle rate obtained by an estimate of TC Weighted Average Cost of Capital (WACC)‚ which is calculated at 9.3%. When analyzing critically at this point‚ TS is underperforming with a return on capital (ROC) of 9.1%‚ whereas‚ P&S segment is well over the required rate of return as it is gaining
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loyalty. She wanted to know how the Company could build an Asia-specific CRM process blueprint for their internal customer management process and transfer that knowledge to its clients. The strategy team had a four-week deadline to present its solutions. Grey Global Group was a full communications enterprise with 16 global partner companies focused on distinct communications disciplines and engaged in a wide range of marketing and
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Case Study of Mount St. Helens Date: 18th May‚ 1980 Time: 8:30-8:33 8: 30—ash and steam erupted. 8:32—earthquake of magnitude 5.1 on the Richter scale caused the bulge on the north side of the mountain to move forwards and downwards‚ releasing material that formed a landslide of rock‚ glacier‚ ice‚ and soil that moved downhill to fill Spirit Lake. However‚ the water only reinforced it‚ and it moved rapidly down the northern fork of the Toutle Valley. The mudflow reached
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(negligently) runs over another while driving carelessly has committed a tort of battery based on negligence Duty of Care The reasonable person standard The law does not require perfection‚ only what is reasonable under the circumstances In the case of a professional such as a doctor‚ engineer or accountant‚ that standard is a reasonable doctor‚ engineer or accountant. SQUISH LA FISH v. THOMCO Issue Did the defendant fail to take reasonable care that the information it provided was correct
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