Teletech Corporation, 1996 Case Solution
In January 1996, the company’s CFO must formulate a reply to a raider who maintains that a major business section of the firm should be sold because it isn't bringing in a reasonable rate of return (ROR). The case recounts the discussion within the business over using an individual hurdle rate to value all sections of the business versus a risk-adjusted hurdle rate system. The pupils' jobs are to solve the disagreement, approximation WACC for the both segments of business and react to the raider. Because the case was prepared to function as portion of an introducing the reader to ways calculating required rates of return, it'd best follow a couple of course sessions. Although the numeric computations needed are light, some of the subtleties about using risk-adjusted hurdle rates will need time for the newcomer to consume.
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: January 10, 1997
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