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Case 16- Teletech Corporation As you will recall, Teletech comprises two quite different divisions, housed within one corporate enterprise. The Telecom Services (TS) Division is basically a regulated utility with predictable 0 cash flows and profitability, but with relatively modest growth prospects. The Products & Systems (P&S) Division serves much more dynamic and competitive markets, with more vola tile ults, but with potentially greater growth. 1. What are the two core reasons that were discussed in the case as to why the Cost of apital should be different between the two divisions? (It might be helpful for this purpose to imagine that the divisions really were two separate companies and then think about how they'd differ in each of those reasons from an investor and creditor perspective, respectively) Explain how those differences impact the WACC for TS and the consequences be if this approach were implemented at Teletech? p&S, respectively, if it were to be computed separately for each division. What would Case 16- Teletech Corporation As you will recall, Teletech comprises two quite different divisions, housed within one corporate enterprise. The Telecom Services (TS) Division is basically a regulated utility with predictable 0 cash flows and profitability, but with relatively modest growth prospects. The Products & Systems (P&S) Division serves much more dynamic and competitive markets, with more vola tile ults, but with potentially greater growth. 1. What are the two core reasons that were discussed in the case as to why the Cost of apital should be different between the two divisions? (It might be helpful for this purpose to imagine that the divisions really were two separate companies and then think about how they'd differ in each of those reasons from an investor and creditor perspective, respectively) Explain how those differences impact the WACC for TS and the consequences be if this approach were implemented at Teletech? p&S, respectively, if it were to be computed separately for each division. What would

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