Weighted average cost of capital for Marriott Corp. The WACC is calculated using the formula: This uses the underlying assumption that the debt-equity ratio for the firm remains constant. In Marriott’s case the corporation’s target leverage ratio based on interest coverage target is set at 60% as taken from Table A. The WACC for the whole firm represents the average cost of capital of the firm’s underlying operating structure. To use this WACC it must be assumed that the cost of capital of the
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Operating profit x (1-0‚35) II. Terminal value operating profit AT: 967‚85/(0‚076-0‚04) III. PV of total Synergies AT assuming WACC is 7‚6%‚ for example for 2001: 118‚5/1‚076^1=110‚10301 IV. PV terminal value: 26884‚72/1‚076^6 1c. Cost of debt = 7% Cost of equity= 5‚5 % + 1‚1 * 7‚7% = 13‚97% New WACC: 0‚05 * 7% + 0‚95 * 13‚97% = 13‚62% Calculations according a new WACC of 13‚62% 2000E 2001E 2002E 2003E 2004E 2005E 2006E 2004c Operating profit AT 0 58‚5 159‚9 447‚2 639‚6 793‚65 967‚85
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HKU833 STEPHEN KO AIRASIA: FLYING LOW-COST WITH HIGH HOPES AirAsia started out as a Malaysian government-controlled‚ full-service regional airline that offered slightly lower fares than its number-one competitor‚ Malaysia Airlines (“MAS”). In December 2001‚ private entrepreneur Tony Fernandes took over the debt-ridden airline for the symbolic sum of US$0.26. Despite the air-travel downturn following the 11 September 2001 terrorist attacks‚ Fernandes believed that the timing for entering
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components of Marriott’s Financial Strategy consistent with its growth objective? Marriott’s sales grew up by 24% and its return on equity stood at 22% in the year 1987‚ the sales and earnings per share has doubled over the previous year as stated in the case study. The company operates in three divisions: lodging‚ contract services and restaurants which represents 41%‚ 46% and 13% of sales in 1987 respectively. Marriott is determined to develop and to enhance its position in each division and remain a
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Case #4 Fighting Grime (Clorox Company) This is a fun case in that it involves branded products that students will recognize yet probably do not associate with Clorox. A good way to introduce the case could be to bring in product samples or show the brand names of their many products and ask students what they have in common? The case is short and vivid and can be assigned ahead or simply read in class. It is an easy case to grasp quickly yet provides some very clear examples of strategic
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Accessed 17. Oct 2009. 4. Project Management Institute Family of Credentials 5. Excerpted from Russell T. Westcott‚ Simplified Project Management for the Quality Professional: Managing Small & Medium-size Projects‚ ASQ Quality Press‚ 2004‚ pages 11–19 http://project-management-knowledge.com/project-team-problems/ Project Manager Selection and Training Standard ITRM Standard CPM 111‐01 Davies‚ J. R. "Defining the Responsibilities of the Project Manager." Plant Engineering‚ 48(9). Gido‚ J. &
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caseF&C INT CASE 4.2 F&C INTERNATIONAL‚ INC. Synopsis Over two centuries‚ the Fries family of northern Kentucky and southern Ohio built a dynasty of sorts in the flavor industry. Alex Fries‚ a German immigrant with a background in chemistry‚ settled in Cincinnati during the early nineteenth century and a few years later established a flavor company. Throughout the nineteenth and twentieth centuries‚ Fries and his descendants owned‚ operated‚
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1.1 Explain the sequence and rate of each aspect of development from birth to 19 years of age Introduction: Children’s do not develop at the same rate as each another .Every child has different rate of Development Areas of development: These are the main areas of development 1. Physical development 2. Social development 3. Intellectual development 4. Language development As there will be difference of children progress at the same rate .The below is the guide To they might
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Education | Ethics Case Studies Ethics Case Studies Ethics Case Study Topics Conflicts of Interest Data Acquisition Educational Concerns Health and Safety Human Subjects Research Issues of Bias Mentoring Publication Practices Responsible Conduct of Research Suggestions & Comments Have an idea for a case study? Send the Ethics Review Committee your ideas! (APS Members Only) Suggest a Case Study The APS Ethics Case Studies are a series of case studies on ethical
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BUSI 497 Corporate Strategy Case Questions: #11 Sara Lee Corp 20 points; due Thursday‚ March 7‚ 2013 Sara Lee Corporation uses primarily a related diversification strategy. Note that questions 5 and 6 will be discussion only; no written answers required. 1. (Yair) Prepare a weighted industry attractiveness assessment similar to Table 8.1 on page 169. See Table 1 below as a template. Based on your table‚ what are your conclusions regarding the industries Sara Lee has chosen? For use
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