This document discusses calculating the weighted average cost of capital (WACC) for Nike and Teletech Corporation using both the single rate and multiple rate methods.
For Nike, it identifies mistakes in the case study's WACC calculation and provides corrections around using market values instead of book values, including redeemable preferred stock in debt, and updating the beta value used. It then recalculates Nike's WACC as 9.27%.
For Teletech Corporation, it calculates the WACC as 9.30% using the single rate method and 9.20% using the multiple rate method weighted by Teletech's business segments. The multiple rate method provides a lower estimated cost of capital.
Cesim Global Challenge International Business Simulation and Strategy Game Gu...Cesim Business Simulations
Cesim Global Challenge is an international business and strategy management simulation game used in higher education institution level courses and corporate training programs to educate better business decision makers.
Find out more here: https://www.cesim.com/simulations/cesim-global-challenge-international-business-strategy-simulation-game
Unilever in India: Hindustan Lever's Project Shakti - Marketing FMCG to the R...Anurag Kumar
Project Shakti is a rural distribution initiative in small villages. The project benefits HUL by enhancing its direct rural reach and at the same time creates livelihood opportunities for underprivileged rural women. Shakti started with 17 women in one state. Today, it provides livelihood enhancing opportunities to over 65,000 Shakti Entrepreneurs who distribute our productions in more than 165,000 villages and reach over four million rural households.
As per Unilever Sustainable Living Plan, Unilever will increase the number of Shakti entrepreneurs that it recruits, trains and employs from 45,000 in 2010 to 75,000 in 2015 globally.
Cesim Global Challenge International Business Simulation and Strategy Game Gu...Cesim Business Simulations
Cesim Global Challenge is an international business and strategy management simulation game used in higher education institution level courses and corporate training programs to educate better business decision makers.
Find out more here: https://www.cesim.com/simulations/cesim-global-challenge-international-business-strategy-simulation-game
Unilever in India: Hindustan Lever's Project Shakti - Marketing FMCG to the R...Anurag Kumar
Project Shakti is a rural distribution initiative in small villages. The project benefits HUL by enhancing its direct rural reach and at the same time creates livelihood opportunities for underprivileged rural women. Shakti started with 17 women in one state. Today, it provides livelihood enhancing opportunities to over 65,000 Shakti Entrepreneurs who distribute our productions in more than 165,000 villages and reach over four million rural households.
As per Unilever Sustainable Living Plan, Unilever will increase the number of Shakti entrepreneurs that it recruits, trains and employs from 45,000 in 2010 to 75,000 in 2015 globally.
The cost of capital is the minimum rate of return which a company is expected to earn from a proposed project so as to make no reduction in the earning per share to equity shareholders and its market price
Dynamic Efficiency and Hotelling's Rulemaggiewinslow
These slides cover present value calculations and then dynamic efficiency for non-renewable resource extraction. This is illustrated using a two-period model with examples using both graphs and Excel spreadsheets.
International Journal of Mathematics and Statistics Invention (IJMSI)inventionjournals
International Journal of Mathematics and Statistics Invention (IJMSI) is an international journal intended for professionals and researchers in all fields of computer science and electronics. IJMSI publishes research articles and reviews within the whole field Mathematics and Statistics, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
1CHAPTER 6Risk, Return, and the Capital Asset Pricing Model.docxhyacinthshackley2629
1
CHAPTER 6
Risk, Return, and the Capital Asset Pricing Model
2
Topics in Chapter
Basic return concepts
Basic risk concepts
Stand-alone risk
Portfolio (market) risk
Risk and return: CAPM/SML
1
Value = + + +
FCF1
FCF2
FCF∞
(1 + WACC)1
(1 + WACC)∞
(1 + WACC)2
Free cash flow
(FCF)
Market interest rates
Firm’s business risk
Market risk aversion
Firm’s debt/equity mix
Cost of debt
Cost of equity
Weighted average
cost of capital
(WACC)
Net operating
profit after taxes
Required investments
in operating capital
−
=
Determinants of Intrinsic Value:
The Cost of Equity
...
For value box in Ch 4 time value FM13.
4
What are investment returns?
Investment returns measure the financial results of an investment.
Returns may be historical or prospective (anticipated).
Returns can be expressed in:
Dollar terms.
Percentage terms.
5
An investment costs $1,000 and is sold after 1 year for $1,100.
Dollar return:
Percentage return:
$ Received - $ Invested
$1,100 - $1,000 = $100.
$ Return/$ Invested
$100/$1,000 = 0.10 = 10%.
2
6
What is investment risk?
Typically, investment returns are not known with certainty.
Investment risk pertains to the probability of earning a return less than that expected.
The greater the chance of a return far below the expected return, the greater the risk.
2
7
Probability Distribution: Which stock is riskier? Why?
8
Consider the Following
Investment AlternativesEcon.Prob.T-BillAltaRepoAm F.MPBust 0.10 8.0% -22.0% 28.0% 10.0% -13.0%Below avg. 0.20 8.0 -2.0 14.7 -10.0 1.0Avg. 0.40 8.0 20.0 0.0 7.0 15.0Above avg. 0.20 8.0 35.0 -10.0 45.0 29.0Boom 0.10 8.0 50.0 -20.0 30.0 43.0 1.00
9
What is unique about the T-bill return?
The T-bill will return 8% regardless of the state of the economy.
Is the T-bill riskless? Explain.
5
10
Alta Inds. and Repo Men vs. the Economy
Alta Inds. moves with the economy, so it is positively correlated with the economy. This is the typical situation.
Repo Men moves counter to the economy. Such negative correlation is unusual.
7
11
Calculate the expected rate of return on each alternative.
r = expected rate of return.
rAlta = 0.10(-22%) + 0.20(-2%)
+ 0.40(20%) + 0.20(35%)
+ 0.10(50%) = 17.4%.
^
^
n
∑
r =
^
i=1
riPi.
12
Alta has the highest rate of return. Does that make it best?^rAlta 17.4%Market15.0Am. Foam13.8T-bill 8.0Repo Men 1.7
13
What is the standard deviation
of returns for each alternative?
σ = Standard deviation
σ = √ Variance = √ σ2
n
∑
i=1
= √
(ri – r)2 Pi.
^
14
= [(-22 - 17.4)20.10 + (-2 - 17.4)20.20
+ (20 - 17.4)20.40 + (35 - 17.4)20.20
+ (50 - 17.4)20.10]1/2
= 20.0%.
Standard Deviation of Alta Industries
11
15
T-bills = 0.0%.
Alta = 20.0%.
Repo = 13.4%.
Am Foam = 18.
This presentation is an overview Cost of Capital.
Dr. Soheli Ghose ( Ph.D (University of Calcutta), M.Phil, M.Com, M.B.A., NET (JRF), B. Ed).
Assistant Professor, Department of Commerce,St. Xavier's College, Kolkata.
Guest Faculty, M.B.A. Finance, University of Calcutta, Kolkata
Solution manual for essentials of business analytics 1st editorvados ji
Full download link :
https://getbooksolutions.com/download/solution-manual-for-essentials-of-business-analytics-1st-edition/
Detail about Essentials of Business : (Click link bellow to view example )
https://getbooksolutions.com/wp-content/uploads/2016/11/Solution-Manual-for-Essentials-of-Business-Analytics-1st-editor.pdf
Table of Contents
Chapter 1. What Is Business Analytics?
Chapter 2. Descriptive Statistics.
Chapter 3. Data Visualization.
4. Linear Regression.
5. Time Series Analysis and Forecasting.
6. Data Mining.
7. Spreadsheet Models.
8. Linear Optimization Models.
9. Integer Linear Optimization.
10. Nonlinear Optimization Models.
11. Monte Carlo Simulation.
12. Decision Analysis.
Similar to Financial Management Nike and Teletech Case (20)
The classroom activities to think and plan business plan for sample company. This business plan not related to the real plan for Adidas AG. For more exchange in ideas please comment. Thank you.
World cup is the most famous sport event in the world with passionate in football. In the host country point of view, world cup is the best channel to promote and boost the economic.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
1. Nike, Inc.: Cost of Capital
1. Miss Nabduan
2. Miss Pratthana
3. Mr. Phornpat
D.
J.
R
5520212002
5520212003
5520212004
4. Miss Neeranuch
5. Miss Reveepitchaya
6. Miss Chulaluck
Ng
R.
Ch.
5520212006
5520212007
5520212008
2. Mistakes From The Case Study
• 1. Methodology for Calculate the cost of Capital (WACC)
• Should use market value not book value
• 2. Cost of debt
• Add redeemable preferred stock (0.3)
• 3. Cost of equity
• CAPM – Change beta from average to latest beta. 0.8 and 0.69
respectively.
3. Market Value should considered
Exhibit 2
Market Value of Equity = Stock Price x No. of Share
Outstanding
From the Case
• Book Value of Equity = Stock Price x No. of Share Outstanding
Market Value of
= 37.27 x 271.5
Market Value of
= 10,118.81
Recalculate Market Value
• Market Value of Equity = 42.09 x 271.5
Market Value of Equity = 11,427.44
4. Find WACC
Exhibit 3
Total Amount of Debt = Current LT + Notes Payable + LT Debt
(discounted) + Redeemable Preferred stock
• Total Amount of Debt = 5.40 + 855.30 + 435.9 + 0.3 = 1,296.90
• Debt + Equity
= 1,296.90 + 11,427.44 = 12,724.34
• Weight of Debt
= Debt / Debt + Equity
Weight of Debt
= 1,296.90 / 12,724.34 = 0.102or 10%
• Weight of Equity
= Equity / Debt + Equity
• Weight of Debt
= 11,427.44 / 12,724.34 = 0.90 or 90%
5. Find Cost of Debt
Exhibit 1,4
Liabilities within 12 months
• Interest rate = Interest Payment / Operating Income
• Interest rate = 58.7 / 1014.2 = 0.058 or 5.8%
•
This interest rate is approximately equal to 20 year yields on U.S
Treasuries (Exhibit 4)
Long-Term Liabilities (Yield to Maturity)
• Nike’s bond issued on 1996, and will expire on 2021, thereby 20 years
• N = 40 , FV = -100 , PV = 95.60 , PMT = -3.375
• Compute I/Y = 3.58 %
• Annual I/Y = 3.58 x 2 = 7.16%
• After Tax Cost of Debt = I/Y (1 - Average Effective Tax) = 7.16% (1-0.38%)=4.44%
N = 40
( 20 years x 2 )
PMT = -3.375
( 6.75/2 )
6. Find Cost of Equity
Exhibit 1,4
Find Cost of Equity
From Bond with 20 years maturity, compound semi-annually with 6.75%
coupon rate.
• Ri = rf + ( rm – rf ) B = 5.74 + (5.90)(0.69) = 9.81%
Rpm : Risk Premium
This interest rate is approximately equal to 20 year yields on U.S
Treasuries (Exhibit 4)
Rf = 5.74
From 20 years current yield
on U.S Treasuries
Rpm = 5.90
From Geometric Mean
B = 0.80
From Average history Bata
7. Find WACC
Exhibit 2
WACC = [Kd(1-t) x D/(D+E)] + [Ke x E/(D+E)]
WACC = [Cost of debt x Weight of Debt] + [Cost of equity x Weight of Equity]
WACC = 4.44% x 10% + 9.81% x 90%
= 9.27%
• To use market weights to estimate WACC will cause show how much the
firm to raise capital today. Cost should approximated by market value of
capital, not by the book value of capital.
10. Telecommunications service Industry
• Cost of Equity(Kequity,telecom)
= Rf
+ β*RPM
= Rf +β*(Rm - Rf)
= 4.62% + (1.04 *(10.12%-4.62%))
= 4.62% + (1.04*5.5%)
= 10.34%
Rf : U.S.Treasury Securities 30-year
β : Average beta of Telecommunications Service
Industry
Rm : Risk Market Rate
Weightdebt,telecom : Market value Debt/Capital
Kdebt,tele : After-tax cost of debt
Weightequity,telecom :
100 %- market value Debt/Capital
= 100%-27.1% =72.9%
Kequity,tele : Cost of equity
WACC Telecommunications service Industry
= (Weightdebt,telecom* Kdebt,telecom) + (Weightequity,telecom* Kequity,telecom)
= (27.1%*3.44%)+(72.9%*10.34%)
= 0.009322 + 0.0753786 = 0.084701
= 8.47%
11. Product & System
FIND WACC :
Cost of Equity PS = Rf +MRP*β
= Rf +(Rm-Rf)*β
= 4.62% + 5.5%*1.36 = 12.1%
Cost of Debt PS (After-tax cost of debt) = 4.48%
Average of Weight of Equity = 100% - Market Value Debt/Capital
= 100 – 9.20 = 90.80 %
Average of Weight of debt = (13.1%+ 5.3%)/ 2 = 9.20%
WACC PS
= {Weight Debt,(p+s)*K debt,(p+s)} + {Weight Equity,(p+s)*K Equity,(p+s)}
= 9.20% * 4.48% + 90.80% * 12.10%
= 11.4%
Rf
: Risk-free rate
= 4.62%
(the yield on 30-years U.S
Treasuries)
Rm
: Market risk rate
=10.12%
MRP
: Market-risk premium
= Rm-Rf
= 10.12% - 4.62
= 5.50%
Average of Beta
= (1.39+ 1.33)/ 2
= 1.36
12. Teletech Corporation,2005
(By Multiple-rate)
WACC of Teletech Corporation
WACC Telecom = 8.47 %
WACC P&S= 11.4 %
WACC Teletech = WACC Telecom + WACC P&S
= (8.47 % * 75 %) + (11.4 % * 25 %)
= 9.20 %
Conclusion
WACC
8.47% <
9.2%
< 11.4%
Telecom < Teletech Corporate < P&S
• From the result, products and systems segment has the highest WACC
• A high WACC indicates that a company is spending a comparatively large amount of
money in order to raise capital, which means that the company may be risky.
• The multiple-rate method would give lower cost (9.20% )than the single-rate method
(9.30% ) which give higher return to shareholders better than a single rate method.