What is the WACC of telecom, Product System?

Exhibit 1 TELETECH CORPORATION, 2005 Summary of WACC Calculation for Teletech Corporation and Segment Worksheet MV asset weights Bond rating Pretax cost of debt Tax rate After-tax cost of debt Corporate 100% A-/BBB+ 5.88% 40% 3.53% Telecommunications Services 75% A 5.74% 40% 3.44% Products and Systems 25.00% BB 7.47% 40% 4.48% Equity beta RE 1.15 4.62% 1.04 4.62% 1.39 4.62% RM RM-Ri Cost of equity 10.12% 5.50% 10.95% 10.12% 5.50% 10.34% 10.12% 5.50% 12.27% 27.10% 72.90% 13.10% 86.90% Weight of debt 22.19% Weight of equity 77.81% WACC 9.30% WACC Horizontal ? Data sources: Bloomberg LP, S&P Research Insight, case writer analysis