MEMORANDUM TO: Mariott Corporation Board of Directors FROM: Chanunnett Manoonpong‚ Rennick Palley‚ Zhihui Zhang‚ Aaron (Jialin) Zhong DATE: August 22nd‚ 2013 ------------------------------------------------- RE: Mariott Corporation Capital Structure ------------------------------------------------- Marriott Corporation‚ with its comparative advantage in hotel development and management‚ has expected excellent future growth and profitability. Such increase in sales might bring in extra cash
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Ronald Coase noted‚“The cost of doing anything consists of the receipts that could have been obtained if that particular decision had not been taken.” For example‚ the opportunity set for this Friday night includes the movies‚ a concert‚ staying home and studying‚ staying home and watching television‚ inviting friends over‚ and so forth. The opportunity cost of taking job A included the forgone salary of $102‚000 plus the $5‚000 of intangibles from job B. Opportunity cost is the sacrifice of
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RUSSIAN BUSINESS CONTEXT FINAL ASSIGNEMENT GAZ Group Russia: the Gazelle light commercial truck 1. What were the major challenges facing Bo Andersson when
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overhead cost. Q2 (a) Single burden pool Cost of five components under existing system Product Direct Labor$ Burden(DL*burden rate) Total cost(DL+ Burden) ICA $917 $1‚329.65 $2‚247 ICB $2‚051 $2‚973.95 $5‚025 CAPACITOR $1‚094 $1‚586.30 $2‚680 AMPLIFIER $525 $761.25 $1‚286 DIODE $519 $752.55 $1‚272 Total $12‚510 (b) Two-burden pool accounting manager’s proposal Product Direct Labor$ E&A Burden Machine-hour Machine-burden Total Cost ICA $917
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for overweight people‚ reference prices are compared to many "non-exact" substitutes that will factor into the price sensitivity of the market. Additionally‚ unlike other drugs in CPS ’ portfolio‚ it ’s unlikely that healthcare payors will cover the cost of Metabical. Since medically‚ the drug is most effective when taken for a full 12 weeks and financially‚ profits are maximized when consumers purchase a full 12 weeks‚ Barbara must consider what mix of pricing and packaging will create the best balance
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What is the weighted average cost of capital (WACC) for Marriott Corporation? WACC = (1 - τ)rD(D/V) + rE(E/V) D = market value of debt E = market value of equity V = value of the firm = D + E rD = pretax cost of debt rE = after tax cost of debt τ = tax rate = 175.9/398.9 = 44% Cost of Equity Target debt ratio is 60%; actual is 41% [Exhibit 1] βs = 1.11 βu = βs / (1 + (1 – τ) D/E) = 1.11/(1 + (1 – .44) (.41)) = 0.80 Using the target debt ratio of 60%: βTs = βu (1 + (1 – τ) D/E)
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retained earnings. Retained earnings are determined by dividend payout. The spreadsheet sets ROE at 15% for the five years from 2006 to 2010. If Reeby Sports will lose its competitive edge by 2011‚ then it cannot continue earning more than its 10% cost of capital. Therefore ROE is reduced to 10% starting in 2011. The payout ratio is set at .30 from 2006 onwards. Notice that the long-term growth rate‚ which settles in between 2011 and 2012‚ is ROE × ( 1 – dividend payout ratio ) = .10 × (1 -
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Liz Chiocco EDF-255 Final Paper Fast Food in Schools 4/26/12 Buckley‚ Cara. "A Proposal to Separate Fast Food and Schools." New York Times [New York] 20 04 2009‚ n. pag. Web 26 April. 2012. . The author explores research done that suggests that the closer a fast food restaurant is to a school‚ the higher is the obesity rate of the children there. Eric N. Gioia is a city councilman from Queens and he wants to ban any fast food restaurants from opening within a tenth of a mile from any
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(negligently) runs over another while driving carelessly has committed a tort of battery based on negligence Duty of Care The reasonable person standard The law does not require perfection‚ only what is reasonable under the circumstances In the case of a professional such as a doctor‚ engineer or accountant‚ that standard is a reasonable doctor‚ engineer or accountant. SQUISH LA FISH v. THOMCO Issue Did the defendant fail to take reasonable care that the information it provided was correct
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Company has been in existence for six years. During this time the company has been fortunate enough to experience a profitable gain. However‚ in a market plagued with increased competition‚ tight budgets and strict regulations‚ that may not be the case this year if changes are not made. With the economy being in the state that it is‚ there have been rumors of a pending recession. Trying to be a proactive company‚ Artemis Sportswear in now trying to find ways in which it can cut back on some of
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