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
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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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MONEY IS THE ROOT OF ALL DEVIL Money seems to be the driving force in many people’s lives. However‚ I do not agree that money is the root of all evil. Money in itself is harmless. It is but a medium of exchange in trade. it is the love of money that can lead to evil. Money becomes a person’s master if that person values material possessions above everything else. Many people do not realize that they are enslaved by money. However‚ you know they are when making money is the top priority in
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“Money is the root of all evil.” This statement has been said for many many decades now. Money is the driving force behind everything in modern society. Man’s obsession of money and need of money has changed tremendously over the last couple of years. Whether it’s robbing banks‚ creating fraud‚ and even stealing from your own family‚ money makes people do crazy things. “Money does not care what happens to a person‚ but yet a person cares about what happens to the money.” The creation of money has
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Money is not the root of all evil. Love is. Whether this is true or not‚ it all depends on individual views. Some may argue that it is true‚ while some say that it is not true. What is money? Money is something used to buy and sell things. Why do people want money so much? It is because of greed. The definition of greed in the dictionary is an extreme desire for something . In the modern world today people use money to buy the things they want or desire to have. Let me ask you‚ what would
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All the Yes points 1. The greed caused by pursuit of money is damaging. 2. spiritual damage 3. there are alternatives to money 4. Family damage 5. If money was such a good thing then IT would serve the people. Instead people serve IT. 6. Money equals a social status 7. money causes interest All the No points 1. Money can be donated to a good cause. 2. some evil clearly nothing to do with money 3. Money is not the root of all evil. The lack of money is the root of all evil. 4. More 5
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Love of Money is the root of all kinds of Evil People do many evil things in order to get rich. (Biblical. Compare this with Idleness is the root of all evil.) Fred: I know I could make more money if I just knew the right things to invest in. Ellen: Don’t worry so much about money. It’s the root of all evil‚ after all. As the newspapers continued to report the dastardly things the wealthy young banker had done to become even wealthier‚ people shook their heads and remarked‚ "The love of money is the
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you about money. Is it the root of all evil? What is money and what is evil? The Chambers school dictionary defines money as the coins and banknotes‚ which are used for payment.The dictionary also defines evil as wicked‚ harmful and unpleasant. You could say that money is the root of all evil but now that would be a lie. The Bible reference from which this idea is derived clearly states that the LOVE of money may I repeat that the LOVE of money is the root of all evil not that money itself is the
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We feel money and power can bring happiness and solve problems but they are not definite causes of those desired states .If that were so‚it would follow that those who have wealth would always be happy and those who do not would always suffer. Money and power facilitate‚but it is clear that they are not the primary causes of happiness and solving our problems.It is justified for us to make material and financial development for building our nation but inner development is also important.What will
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