ITC Limited: Decoding Business Segment Betas

Shalini Talwar and Anmol Garg
Additional contact information
Shalini Talwar: K. J. Somaiya Institute of Management Studies & Research, Mumbai, India
Anmol Garg: K. J. Somaiya Institute of Management Studies & Research, Mumbai, India

Asian Case Research Journal (ACRJ), 2019, vol. 23, issue 02, 203-235

Abstract: OCV was seeking to improve its processes and enhance the skills of its analysts so as to provide valuable solutions for their clients in terms of the issues related to the profitability and risk of their existing business portfolios as well as the proposed new projects. A team was formed to evaluate if breaking down the weighted average cost of capital (WACC) to the divisional level could improve the quality of investment decisions by multi-division firms. ITC was chosen to analyse the entire process of breaking down WACC to the divisional level. The team had three distinct tasks to undertake. The first was the calculation of the divisional WACC for different business segments of ITC, the second was an extensive discussion on the issues that could arise in the complex computations, and the third was to take a final call on whether the breaking down of WACC to the divisional level would really add value to the future investment decisions.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0218927519500081
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:acrjxx:v:23:y:2019:i:02:n:s0218927519500081

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0218927519500081

Access Statistics for this article

Asian Case Research Journal (ACRJ) is currently edited by Lau Geok Theng

More articles in Asian Case Research Journal (ACRJ) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().