Documentos de Académico
Documentos de Profesional
Documentos de Cultura
This spreadsheet was prepared by Professor Kenneth Eades. Copyright 2005 by the University of Virginia Darden School Foundation, Charlottesville, VA. All
rights reserved. For customer service inquiries, send an e-mail tosales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in
a retrieval system, posted to the Internet, or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwisewithout
the permission of the Darden School Foundation. Rev. 11/09.
Exhibit 1
Summary of WACC Calculation for Teletech Corporation and Segment Worksheet
Telecommunications Products
Corporate Services and Systems
MV asset weights 100% 75% 25%
Bond rating A-/BBB+ A BB
Pretax cost of debt 6.114% 5.74% 7.47%
Tax rate 40% 40% 40%
After-tax cost of debt 3.53% 3.44% 4.48%
Data sources: Bloomberg LP, S&P Research Insight, case writer analysis.
I II III
Scenarios
Telecom Only Telecom & P+S P+S Only
Allocation of Resource
- Telecom 100% 75% 0%
- P&S 0% 25% 100%
Invested Capital (mn USD) 2,000 2,000 2,000
ROC 9.10% 9.58% 11.0%
NOPAT 182 192 220
WACC 8.49% 9.30% 11.73%
Value to Enterprise (mn USD) 2,144 2,059 1,875
Economic Profit 12.21 5.49 (14.65)
Debt to Capital of Telecom
0.0% 24.1% 25.1% 26.1% 27.1% 28.1%
6.2%
Debt to Capital of P&S
7.2%
8.2%
7.5%
10.2%
11.2%
12.2%
13.2%
l of Telecom
29.1% 30.1% 31.1%
Exhibit 3
TELETECH CORPORATION, 2005
Samples of Comparable Firms
Teletech Corporation 16,000 1.15 A/BBB+ 46% 3.0 22% 29% 12.9
Industrials
AAA 5.44% 3-month 3.56%
AA 5.51% 6-month 3.99%
A 5.74% 2-year 4.23%
3-year 4.23%
BBB 6.23% 5-year 4.25%
BB 7.47% 10-year 4.39%
B 8.00% 30-year 4.62%
Phones
A 6.17%
BBB 6.28%
Utilities
A 5.69%
BBB 6.09%
18.00%
16.00%
14.00%
Products and
Systems
12.00%
% Rate of Return
Risk-adjusted Hurdle
10.00%
Teletech Corp. Hurdle
8.00% Telecomm. Services
Products and Systems
6.00%
4.00% Telecommunications
Services
2.00%
0.00%
Risk Level
Products and
Systems
Risk-adjusted Hurdle
Teletech Corp. Hurdle
Telecomm. Services
Products and Systems