Teletech-corporation-1996(讯科公司-业务部门的风险与回报权衡)

TELETECHCORPORATION,1996---Businesssegmentsandrisk-returntrade-offsCASEANALYSIS案例分析

Shareholder

VictorYossarianCEOMaxwellHarperCFOMargaretWestonTSVPRickPhillipsP&SVPHelenBuonoAssistantBernardInglesTeletech’sManagersPersonage

Introduction人物介绍DATAANALYSISShareholder:

VictorYossarian贺智琼DATAANALYSIS数据分析Shareholder:

VictorYossarianTheProfitTheRateThesuggestionAlthoughtheNOPATofP&Ssegmentwas0.48billionlastyear,it’sWACCwas13.96%whichishigherthantheIRR12%andtheROC10.43%.Sotheeconomicprofitwillbelost,anditmakethefirm’ssharescannotkeeppacewiththeoverallstockmarketindices.Thefirmismisusingitsresourcesandnotearninganadequatereturn.Anditwillbebetterifyouabandonitsmisguidedentryintocomputers,andselltheP&SSegment.BUSINESSANALYSISCEO:

MaxwellHarper许子华BUSINESSANALYSIS经营分析CEO:

MaxwellHarperTelecommunicationsServicessegmentProductsandSystemssegmentStrengthMainSuppliersforregionalmarketHighlySatisfactionStablyReturnSafelyInvestmentLowerCost

WeaknessLowlyGrowthRateIndustryregulatedThreaten

TaxcutsdelayedNewcompetitorstoenterOpportunity

TheindustryisevolvingStrength

TechnologyleaderHigherGrowthRateWeaknessWidelyinvestmentHighcostoffinancingHighRiskThreatenElasticityisverybigPowerfulforeigncompetitorsOpportunity

ThepotentialvalueisinfiniteBUSINESSANALYSIS经营分析CEO:

MaxwellHarperTSP&SMarketValue75%25%GrowthRate3%40%BondWeightings22.80%3.45%Rateofprofit10.73%9.60%Thebeta0.841.5BusinessDateThemarketsituationofthetwosegmentsarecompletelydifferent,thebusinessrisk,capitalstructureisalsodifferent,soexpectedreturnisdifferent,thegreatertherisk,theexpectedreturnishigher,thesmallertherisk,theexpectedreturnisthelower.Conclusion:FINANCIALANALYSISCFO:

MargaretWeston姚辉FINANCIALANALYSIS财务分析CFO:

MargaretWestonTheMissionWewillcreatevaluebypursuingbusinessactivitiesthatearnpremiumrateofreturn.TheMeasureEconomicprofit=(ROC–HurdleRate)*CapitalEmployedWhere,ROC=ReturnonCapital=NOPAT/CapitalNOPAT=NetOperatingProfitAfterTaxesEachyear,thesegmentandbusinessunitexecutivesweremeasuredonthebasisofeconomicprofit.TheEquationNPV=∑nt=1[FreeCashFlowt/(1+HurdleRate)t]-InitialInvestmentUsetheequationtoassessthecapital-investmentproposalsFINANCIALANALYSIS财务分析CFO:

MargaretWestonWHATISHURDLERATEFINANCIALANALYSIS财务分析CFO:

MargaretWestonHurdleRatesThisratewasbasedonanestimateofTeletech’sweightedaveragecostofcapital(WACC).

ThecalculationHurdleRates=RWACC=Wdebt*Rdebt+Wequity*Requity

=Wdebt*RB(1–T)+Wequity*[(RM-Rf)β+Rf]Where:Wdebt=WeightofDebt,Wequity=WeightofEquity

RB=BondRates,RM=MarketRates,Rf=Risk-freeRate

β=Companystock'sbetacoefficientT=TaxRateFINANCIALANALYSIS财务分析CFO:

MargaretWeston

PresentsituationTSP&STeletechCostofDebt4.20%4.67%4.22%CostofEquity10.66%14.29%11.77%BondRating7.%7.78%7.03%TaxRate40%40%40%β0.841.51.04RM-Rf5.5%5.5%5.5%RWACC9.19%13.96%10.41%Thefirm’shurdlerateisraisedbytheP&Ssegment.Inpresentsituation,weusethesinglehurdlerateoffirmaswholetoestimatetheperformanceofeachsegment.Itisindeedunfairforthelow-risksegment.Theperformancewasdeprivedbythehigh-risksegment.TS’SOPINIONVP:

RickPhillips解辉TS’SOPINION部门观点VP:

RickPhillipsAdvocatethemultipleratesTrulyandfairlyreflecttheperformanceofeachsegment

ToreducethecostoffinancingInthelongrunmoretrulyreflectthecapital-structureHelptopromotethefinancingP&S’SOPINIONVP:

HelenBuono王之祥P&S’SOPINION部门观点VP:

HelenBuonoUsetheonehurdleratesBasedonaonehurdlerate,investorscanmoreeasilyjudgment.CompaniestoraisemoneyisbasedontheoveralloutlookandrecordSinglehurdleratecandirectfundsintothedepartmentoffersahighreturnOnemorethings……Itseemsthatthemultiplehurdleratesarethebetter,butalsohavesomequestions.MargaretWeston’sConcerns姚辉CFO:

MargaretWeston

QuestionsQuestionOne:Multiplehurdlerateisbasedonthecostofcapitalratherthanastrategicconsideration,errorsmayoccur.QuestionTwo:Usingthemultiplehurdleratewilllosemorecomparisonbetweendepartmentswiththesignificanceofperformanceevaluation.QuestionThree:

Itisdifficulttoassessthedebtability.QuestionFour:Multiplehurdlerateiseasytoconfuseinvestmentandfinancing.QuestionFive:Companygoalistogivemaximumreturnofequityfundsorgiveshareholdersthebiggestreturns.TheQuestionsMargaretWeston’sConcernsNewHurdleRateAssistant:

BernardIngles周东初NewHurdleRate新的门槛率Assistant:

BernardInglesAssumptionReturnisdrivenbyriskFinancialistransparentThevalueofthewholeisthesumofthepartsvalueMVTeletech=MVservice+MVP+S=MVdebt+MVequityThe“assetbeta”willequalaweightedaverageofthecomponents

βteletech

assets=wTelserv*βTelserv+wp+s*βp+s=wdebt*βdebt+wequity*βequityNewHurdleRate新的门槛率Assistant:

BernardInglesWACCTeletech=wTelserv*WACCTelserv+wp+s*WACCP+sWhere:wTelserv,wp+s=marketvalueweightsWACCTelserv=wdebtTelserv*KdebtTelserv+wequityTelserv*KequitiyTelservThenewformulaTSP&STeletechmarketvalue