Therefore‚ we used βu = βE * E/V to deleverage the financial risk for each of the hotels and compute the weight average of the βu for the hotel business by the revenue of each hotel. The details are in the attached excel file. βu of lodging division of Marriott = βu of pure play in the hotel industry Then‚ we can calculate the βE of lodging divison at Marriot by releverage the βu of pure play. The βE of lodging divison at Marriot‚ βE = βu + [βu – βD] * (D/E) * (1-T) Among them‚ βu = 0.4113‚ βD = 0.3595
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Marriott Corporation : The Cost of Capital( Abridged) (บริษัท Marriott : ต้นทุนของเงินทุน (สรุป) ในเดือนเมษายน 1988 Dan Cohrs รองประธานของโครงการการเงินที่บริษัท Marriott ได้มีการเตรียมตัวแนะนำรายปีสำหรับ Hurdle rates(อัตราส่วนลด)ของแต่ละแผนก 3 แผนก โครงการการลงทุนแต่ละจะถูกคัดเลือกโดยอัตราส่วนลดที่เหมาะสมของ แต่ละแผนก ในปี 1987 Marriott มียอดขายเติบโต 24 % ละ ROE มียอดขาย 22% และรายได้ต่อหุ้นเพิ่มขึ้น 2 เท่า จากเมื่อ4ปีก่อน และกลยุทธ์การดำเนินการมีเป้าหมายตามแนวโน้มนี้ต่อไป
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UNIVERSITY MARRIOTT CORPORATION BONDHOLDERS VERSUS EQUITY HOLDERS On October 5‚ 1992‚ Marriott Corporation announced a plan to restructure the company by splitting itself into two parts. The announcement caused immediate and opposite price movements for its stock and its bonds. Stockholders were happy and bondholders were in a furor‚ particularly those that bought a new issue of bonds in April. The Restructuring Plan The two separate companies were to be Marriott International and Host Marriott. The
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What is the overall weighted average cost of capital for Marriott Corporation? (Use a corporate tax rate of 34%). What type of investments would you value using Marriott’s WACC? Cost of debt：8.95%+1.3%=10.25% Cost of equity：8.95%+1.64*7.43%=21.14% 實際beta=1.11，根據exhibit 1，長期債務為24.99億美元，權益價值為35.64億美元(30元*118.8百萬股)，可以得出D/V=24.99/35.64=41%標的資本結構D/V=60%，所以必需做出調整。 V=D+E，D/V=41%，E/V=59% Beta of asset=(E/V)*beta of equity=0.59*1.11=0.655 Beta of equity=(V/E)*beta of asset=(1/0.4)*0.655=1.64 Risk free
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Marriott Corporation: The Cost of Capital T c=income taxes of 1987 / income before income taxes of 1987 = 175.9/398.9 = 44% Step 1:From the Exhibit 3 ß equity for each firm in this industry are below Marriot Corporation 1.11; Hilton Hotels Corporation .76 ; Holiday Corporation 1.35 La Quinta Motor Inns .89; Ramada Inns‚ Inc 1.36. Step 2: For each firm in the industry‚ to estimate bunlevered using the bequity estimate: bequity = [1 + (1-TC)Debt/Equity]bunlevered bunlevered of Marriot= 1.11/[1+(1-
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CSR Gap Analysis of the GAP Gap Inc prefaces their 2004/5 CSR report with the question: what is a company’s role in society? Their answer is that a company ‘only realizes its full potential when it embraces its role as a global citizen’. This raises two interesting points; the first is that the answer to the question ‘what is a company’s role in society?’ will be conditioned by normative assumptions about business/government relations in a firm’s country of incorporation. David Detomasi
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Hotel Industry/Marriott Analysis Analysis of the Hotel Industry Industry Profile The need for lodging for individuals after traveling a great distance from home has been around since mankind began living inside of dwellings. To serve this need‚ hotels‚ or as they were more commonly referred to‚ inns‚ were created as a means to accommodate these travelers. In fact‚ the first recorded inn in America opened in 1607. Since their introduction they have grown in complexity‚ amenities‚ price‚ and
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MARRIOTT INTERNATIONAL‚ INC. { PEST ANALYSIS } External Environment Analysis Every organization has analyzed its strength and weakness. Nevertheless‚ the external environment is also the important factor that affects the future of the organization. In the environment that we are living nowadays has changed all the time. Therefore‚ it has to analyze on the external factors. PEST Analysis is the tool and method to handle the marketing‚ which is one of the well-known methods to analyze the external
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GAP Analysis: A technique that businesses use to determine what steps needed to be taken in order to move from its current state to its desired‚ future state. Also called need-gap analysis‚ needs analysis‚ and needs assessment. Gap analysis consists of (1) listing of characteristic factors (such as attributes‚ competencies‚ performance levels) of the present situation ("what is")‚ (2) listing factors needed to achieve future objectives ("what should be")‚ and then (3) highlighting the gaps that
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Marriott Corporation Jacob Piquette Jingjin Cen Chen Huo Wenkao Wu Accurately Measuring Debt Capacity For Marriott Corporation While management was correct in some aspects of measuring debt capacity for Marriott Corporation‚ the method used to obtain the ratio of 6.64 did not include the debt from the previous repurchase‚ grossly overstating the ratio and leading to believe that Marriott Corporation had a large unsused portion of debt capacity. This is shown in Exhibit 5. After thorough analysis
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