Marriott Corporation: The Cost of Capital April 2012 Executive Summary Determining the appropriate cost of capital for new investment projects for a diversified company like the Marriott Corporation is not an easy endeavor. However‚ it is an important exercise because the more effective the process‚ the better it can help to support the company’s growth objective with its financial strategy. The four components of the financial strategy are: manage rather than own hotel
Premium Investment Finance Weighted average cost of capital
12-Sep-13 Objectives of firms 1. Profit Maximisation In neo-classical economics it is assumed that the interest of owners or shareholders are the most important. Just as consumers attempt to maximise utility‚ shareholders main motivation is to maximise their gain firm the company. Therefore‚ one of the main objectives of firms is to maximise profit. Profit is the reward for the risk-bearing function of the entrepreneur. The firm is in equilibrium‚ and is maximising profit‚ when it
Premium Economics Profit maximization Profit
San Francisco Public Utilities Commission Preserves Expertise with Better Knowledge Management CASE STUDY A major challenge facing many companies and organizations is the imminent retirement of baby boomers. For certain organizations‚ this challenge is more daunting than usual‚ not only because of a larger spike in employee retirements‚ but also because of the business process change that must accompany significant shifts in any workforce. The San Francisco Public Utilities Commission (SFPUC)
Premium Business process management Business process Process management
laid out‚ the change effected and then the whole change measured against the goals initially stated. Then one can see if a new change or further change is necessary. These processes are laid out in Dr. E. Goldratt’s book the Critical Chain as The Theory of constraints. Harvard Professor J.Cotter outlines 8 steps to bridge the change gap. These steps as shown in the following illustration bridge the gap between the current state and the desired state. As in Cotters first step the managers of the
Premium Project management
Introduction The role of tacit and explicit knowledge in the workplace Elizabeth A. Smith The author Elizabeth A. Smith is Vice President of Summit Resources‚ Inc.‚ Houston‚ Texas‚ USA‚ and Adjunct Professor in Administrative Sciences‚ School of Business and Public Administration at the University of Houston Clear Lake. Keywords Knowledge workers‚ Information resources management‚ Motivation Abstract Knowledge plays a key role in the information revolution. Major challenges are
Premium Knowledge management Knowledge
Teaching Note Synopsis and Objectives Suggestions for complementary cases on measures of investment analysis: “The Investment Detective” (Case 17); corporate resource allocation: “Victoria Chemicals (A) and (B)” (Cases 22 and 23); “Target Corporation” (Case 19). In January 2001‚ the senior management committee of this company has to decide which major projects should be funded for implementation by the company starting in 2001. The board of directors has arbitrarily set a limit of (euros) EUR120
Premium Management Economics Finance
discriminated against and look down upon in the White society. In reality the Chinese brought us new great agriculture‚ industrial development and commercial fisheries. Without the Chinese America may have not developed its infinite ways of new evolutionary expansion during those times. In the 21st century we
Premium United States Immigration to the United States China
large firms have over smaller firms and vice-versa‚ in the pursuit of entrepreneurial activity. As an enterprise can be defined as private business‚ it can thus be separated into two main categories which are small firms and large firms. Within many countries and many industries there are normally a large number of small firms and a smaller number of large firms as can be seen in the United Kingdom where there are only a few thousand large firms and over 4 500 000 small to medium sized firms according
Premium Entrepreneurship Entrepreneur Small business
Multinational Corporations and Foreign Direct Investment: An Analytical Look at their Determinants‚ Characteristics‚ Costs and Benefits for Host and Investing Countries. As Foreign Direct Investment (FDI) flows have increased dramatically in recent decades‚ the issues of FDI have attracted strongly scholarly interest. First of all‚ FDI is defined as an investment in one economy by a multinational or transnational corporation based in other country. It involves a long-term relationship and either
Premium Investment Foreign direct investment Macroeconomics
premium would not be involved. No flotation cost would involve. 3. Third alternative available to company is to sell 6%cumulative preferred stock. Issue 1. Assuming that the new funds earn the same rate of return currently being earned on firms assets (earnings before interest and taxes/total assets)‚ what would earning per share be for 2007 under each of the three financing methods? Assume that the new outside funds are employed during the whole year of 2007‚ the sinking fund payment for
Premium Stock Stock market Balance sheet