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 flow‚ resulting in underutilized
Premium Stock Finance Weighted average cost of capital
Capital Structure and Debt Structure* Joshua D. Rauh Kellogg School of Management and NBER Amir Sufi University of Chicago Booth School of Business and NBER February 2010 *We thank Doug Diamond‚ Anil Kashyap‚ Gordon Phillips‚ Michael Roberts‚ Toni Whited‚ Luigi Zingales‚ and seminar participants at Emory University‚ Georgetown University‚ Maastricht University‚ Rice University‚ Tilburg University‚ the University of California-Berkeley‚ the University of Chicago‚ the University of Colorado
Premium Debt Finance Credit
major theories on capital structure: By way of a conventional start‚ perhaps it would be worth our while to look at what "capital structure" actually means. In broad terms‚ it is essentially the firms ’ mix of debt and equity but it would be wrong to assume that this is all there is to it. These two terms belie the complexity that lies beneath‚ from the viewpoint of the decisions that any firm must take - that is to say‚ what kind of debt and which type of equity. Capital structuring would then
Premium Finance Operational risk
you would read the topic theories of capital structure. Here‚ I have made these theories simplified. I hope‚ you can study these theories here and use these theories as reference. We all know that capital structure is combination of sources of funds in which we can include two main sources’ proportion. One is share capital and other is Debt. All four theories are just explaining the effect of changing the proportion of these sources on the overall cost of capital and total value of firm. If I have
Premium Finance Weighted average cost of capital Stock
Financial Decision Making Final Project Case analysis: Marriott Corporation Introduction and background The Marriott Corporation‚ an American firm‚ was founded in 1927 by J.Willard Marriot.The company began as a small beer stand and soon began to sell food and provided lodging that expanded rapidly. With the help of his wife Alice‚ the family owned business had 45 restaurants in nine states by 1940 and grew into one of the leading service companies. The Company has three major lines
Premium Rate of return Net present value Weighted average cost of capital
Capital Structure Theories Capital Structure Capital Structure is the proportion of debt‚ preference and equity capitals in the total financing of the firm’s assets. The main objective of financial management is to maximize the value of the equity shares of the firm. Given this objective‚ the firm has to choose that financing mix/capital structure that results in maximizing the wealth of the equity shareholders. Such a capital structure is called as the optimum capital structure. At the optimum
Premium Finance Weighted average cost of capital Generally Accepted Accounting Principles
Journal of Finance and Investment Analysis‚ vol.1‚ no.2‚ 2012‚ 61-81 ISSN: 2241-0988 (print version)‚ 2241-0996 (online) International Scientific Press‚ 2012 Topic: capital structure determinants of quoted firms in Nigeria and lessons for corporate financing decisions Michael Nwidobie Barine1 Abstract Financial arrangements determine how and the amount of financing that can be obtained from fund providers. An optimal allocation between equity and debt is determined by the trade-off between
Premium Corporate finance Finance Tax
Influence of Capital Structure on Leverage of Cement Sector in Pakistan CONTACT NUMBERS: ACKNOWLEDGEMENT First of all we would like to thank Allah Almighty for granting us the capability and courage to work on this report with my best efforts‚ and for the patience and perseverance endowed by Him. We would also like to thank Mr. H. JAMAL ZUBAIRI for giving us the chance to work on this report and for his guidance‚ advice and examples during regular sessions which
Premium Corporate finance Regression analysis Debt
Capital Structure Stewart C. Myers The Journal of Economic Perspectives‚ Vol. 15‚ No. 2. (Spring‚ 2001)‚ pp. 81-102. Stable URL: http://links.jstor.org/sici?sici=0895-3309%28200121%2915%3A2%3C81%3ACS%3E2.0.CO%3B2-D The Journal of Economic Perspectives is currently published by American Economic Association. Your use of the JSTOR archive indicates your acceptance of JSTOR ’s Terms and Conditions of Use‚ available at http://www.jstor.org/about/terms.html. JSTOR ’s Terms and Conditions of Use
Premium Corporate finance Finance Stock market
Assignment: Capital Structure PART A 1. Apple Corporation has 2.5 million shares outstanding with a market value of $2.00 each (expected return = 16%) and debt with a market value of $1‚ 000‚000 and a return of 10% Required a. What is the return on the capital of Apple Corporation? [Show all workings and formulae) [7.5 marks] 2. Samsung generates pre-tax earnings of $2‚000‚000 per year. Currently it has issued 1 million shares which sell for $10 each. Samsung has no debt in
Premium Weighted average cost of capital Academic dishonesty Finance