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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Robbie Fitzgerald BUS3950 Case 3: McBurger Inc. 4/01/14 McBurger Inc. Quality Analysis INTRODUCTION/PURPOSE: Mr. McBurger‚ My name is Robbie Fitzgerald‚ I was hired as your operations consultant. My job is to improve the overall quality service of McBurger Inc. Based on what I received last week‚ I was told that you are experiencing an increase in customer complaints. Your biggest complaint is wait time. This is not good‚ this means customers have to wait for their food when your mission is to
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data from last 1600 surgeries held in a local hospital and applied an analysis. He got the following result Identification: It is binary logistic regression (LOIGT) Coding 0 = Death 1 = Alive The two post-operative status of the patients are death and alive coded by 0 and 1 respectively to use in binary logistic regression. Hosmer and Lemshow goodness of fit test sig value = 0.896 The analysis is fitted that means the analysis is compatible with the data and the logit model is expected to predict
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Revlon Inc. Case Study: 1). Introduction History: Revlon is a universal company that sells products for skin care‚ cosmetics‚ personal care‚ fragrance and professional products. It was founded in 1932 and began in the nail polish market‚ soon after expanding into lipstick. Over the past six years‚ Revlon has consistently lost revenue and struggled with debt. Even though they have eliminated executive positions‚ reduced staffing and consolidated sales and marketing functions to save an approximate
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include the parties involved: Sterling‚ Inc. and their state of the art computers‚ and NoBugs Corporation‚ the producer of microchips. Their relationship dates back 10 years‚ equally profitable. Due to an imperfection in the microchips‚ a series of explosions exceeding the amount of $20 million affecting Sterling Inc. and damaging their reputation. NoBugs has recalibrated the issue‚ regaining the high quality products that has been used with Sterling‚ Inc. in the past. Possible negligence with NoBugs
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Described Historical Perspective: The historical perspective of Apple Inc. shows us that they were an innovative company that started the industries of successful computers‚ music players‚ phones and many other electronic items we have used over the past thirty years. Apple Inc. have had their ups and downs to include in depth software/hardware which was difficult for competitors and users to understand and mimic as well as holding face on their computer background with their innovative technologies
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I. Brief Background of the Case August Scientific Instruments‚ Inc. (ASI‚ Inc.) is a small private company which specializes in the manufacturing of miniature electromechanical components. It is located on a small but progressive town wherein a Technical Education Institute is also based. At first‚ the company underwent several problems and setbacks and was able to grow steadily and expand its operations until in 1958; it was able to acquire additional investments‚ substantial monthly sales and
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MSC FIN.. & ACCOUNTING MSC FIN & ACCOUNTING PREPARED BY:: FLUTURA BIILCARII PREPARED BY FLUTURA B LCAR IINSTRUCTOR:: NSTRUCTOR LEDIIA CIIRKO LED A C RKO Date 25th May‚ 2011 BOSTON CHICKEN INC (CASE ANALYSIS) Questions 1. How is the company reporting on its performance and risks? What are the keys assumptions behind these policies? Do you think that its accounting policies reflect the risks? 2. What adjustments‚ if any‚ would you make to the firm’s accounting policies? 3. What questions would
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Week 3 IRAC method Aug 18‚ 2014 Week 3 IRAC method Mattel‚ Inc. v. MGA Entertainment‚ Inc. Case No. 11-56357 (9th Cir. Jan. 24‚ 2013) United States Court of Appeals for the Ninth Circuit Facts This was a litigation case between Mattel‚ Inc.‚ the maker of Barbie dolls‚ and MGA Entertainment‚ Inc.‚ the maker of Bratz dolls‚ Mattel stated claims for copyright infringement and misappropriation of trade secrets‚ and MGA stated its own counterclaim misappropriation of trade secrets. The idea
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Nike‚ Inc. : Case Study in Operations Management MGT 441 Prepared for: Dr. Davidson‚ Concord University Prepared by: Jeremiah Nelson Johnathan Coleman Emily O’Dell December 4th‚ 2012 Introduction Low-cost‚ time-efficient manufacturing of goods is a key feature of a successful production company in today’s competitive global economy. Operations management‚ often abbreviated in the business world as OM‚ is defined as “...the set of activities that creates value in the form of goods
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