Calculating WACC for Marriot Marriot has three divisions : * Lodging * Restaurant * Contract services Financial Strategy of Marriott * Manage rather than own hotel assets * Invest in projects that increase shareholder value * Optimize the use of debt in the capital structure * Repurchase undervalued sharesunlevered Unlevered Asset Beta Asset beta = (E/V) * Equity betaE = Market value of equity V = Market value of company = Market value of equity
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Sam O’Brien‚ C10390017‚ DT366 yr2 Report on the WACC for Fiat motors The WACC is the weighted average cost of capital. It is a calculation of the firms cost of capital taking into account the relevant weight of equity and debt as a proportion of the total. The cost of equity or KE calculated using a risk free rate example German 5yr government bond‚ the firm’s beta and the return on the market. The firm’s beta is a calculation of the firms exposure to the market‚ a beta of less than 1 indicates
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in order to convince Boeing’s CEO and other upper management that the project would be financially profitable for Boeing’s shareholders. In order to complete this financial analysis‚ Bair will need to calculate Boeing’s WACC along with IRR to determine whether this is a financially worthwhile project. In order to calculate the WACC‚ Bair must consider the betas from Boeing’s commercial sector as well as the defense sector. One beta cannot be used for the whole company due to the vast difference
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Executive summary In this assignment The focus would be on why I would suggest BreadTalk to have its presence in Japan along with supporting sources and references broken down into introduction‚ market trend‚ environment analysis‚ marketing mix with 4ps and competitors analysis‚ implementation‚ evaluation and control‚ overall report‚ justification and references. * Introduction The first flagship store that BreadTalk started from was from a little humble store in Bugis Juction located in the
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CAPITALISATION BOARD SECTOR Buy S$0.425/ S$0.57 S$99.8 Catalist Consumer -F&B BreadTalk Group Limited A stable staple BREAD SP Michelle Tan‚ (65) 6210-8671 – michelle.tan@cimb.com BreadTalk was incorporated in Singapore on 6 Mar 03 as an investment holding company. It was listed on the SGX Catalist Board in 2003 and operates bakery outlets‚ food courts and restaurants. Spreading wings far and wide. BreadTalk has come a long way. To date‚ it has 246 bakery outlets‚ 31 food courts and eight
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|0 | Debt was derived by adding short term borrowings to total long term liabilities as reported in the balance sheets (Exhibits 1 and 2). In addition‚ we added $100M to SBS’s long term debt as their latest financial statements were released before their 5 year notes were issued in Oct 10[3]. Both companies have not issued preferred stock. Cost of Equity We use the yield on 20 year Singapore Government bonds‚ 3.36%[4]‚ as the long term risk-free rate. To obtain
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A Note on Valuation Models: CCFs vs. APV vs WACC Fabrice Bienfait Table of Content Introduction..................................................................................................................................... 2 Enterprise Valuation ....................................................................................................................... 2 The Weighted Average Cost of Capital Approach ......................................................................... 2 The
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Financial Management Agenda 1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? 2. If you do not agree with Cohen’s analysis‚ calculate your own WACC for Nike and justify your assumptions. 3. Calculate the costs of equity using CAPM‚ the dividend discount model‚ and the earnings capitalization ratio. What are the advantages and disadvantages of each method? 4. What should Kimi Ford recommend regarding
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SWOT Analysis of BreadTalk Group Limited 1 Purpose Our brief analysis of BreadTalk Group Limited addresses the overview of their market position strengths‚ recognizing their weaknesses‚ possible opportunities and potential future threats. This gives the group and their potential investors an insight of their growth and a chance to counter-react to obstacles heading their way. 2 Background BreadTalk which is best known for its signature floss buns‚ started out in 2000 as a local bakery chain.
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Marriot Case Marriot use the Weighted Average Cost of Capital to estimate the cost of capital for the corporation as a whole and for each division‚ and the hurdle rate is updated annually.(WACC = (1-Tc) * (D/A) * R[D] + (E/A) * R[E]) Marriot’s Tax Bracket = 175.9/398.9 = 44% Division’s asset weight to the corporation: Lodging = 2777.4/4582.7 = 0.59 Contract = 1237.7/4582.7 = 0.28 Restaurant = 567.6/4582.7 = 0.13 Risk free rate is 30 years T-Bond = 8.95% (Lodging use long-term debt)
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