Executive Summary The case‚ Marriott Corporation: The Cost of Capital (Abridged)‚ concentrates on making decisions based on capital asset pricing model (CAPM) and the weighted average cost of capital (WACC) to measure the opportunity cost for investments. Dan Cohrs‚ the Vice President of Finance of Marriott Corporation‚ had to deal with making recommendations for the hurdle rates at Marriott Corporation and its three divisions which are lodging‚ restaurant and contract services. In calculating
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1. How does Marriott use its estimate of its cost of capital? Does this make sense? Marriott has defined a clear financial strategy containing four elements. To determine the cost of capital‚ which also acted as hurdle rate for investment decision‚ cost of capital estimates were generated from each of the three business divisions; lodging‚ contract services and restaurants. Each division estimates its cost of capital based on: Debt Capacity Cost of Debt Cost of Equity All of the above are
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Introduktion Begrebet organisation Side 10 * En organisation er et antal mennesker der samarbejder om at nå et eller flere fælles mål * Består af mere end en person * Mellem deltagerne foregår et samarbejde der på den ene eller anden måde er koordineret. * Rette sig imod at opfylde et eller flere mål * Muligt at afgrænse hvad der hører med til organisationen og hvad der ligge udenfor. Organisationsniveauer Side 11 * Individer; En organisation består af nogle individer
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Case #3 “Marriott Corporation” The Cost of Capital” What is the weighted average cost of capital for the Marriott Corporation and cost of capital for each of its divisions? – What risk-free rate and risk premium did you use to calculate the cost of equity? – How did you measure the cost of debt? – How did you measure the beta for each division? Solution What risk-free rate and risk premium did you use to calculate the cost of equity? – Risk-free rate proxy The risk-free
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Harvard Business School 9-298-101 Rev. March 18‚ 1998 Marriott Corporation: The Cost of Capital In April 1988‚ Dan Cohrs‚ vice president of project finance at the Marriott Corporation‚ was preparing his annual recommendations for the hurdle rates at each of the firm ’s three divisions. Investment projects at Marriott were selected by discounting the appropriate cash flows by the appropriate hurdle rate for each division. In 1987‚ Marriott ’s sales grew by 24% and its return on equity stood at 22%
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EXECUTIVE SUMMARY Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds‚ language‚ tradition‚ religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement. We value our shareholder’s so we will only take steps that will ensure
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Harvard Business School 9-282-042 Rev. September 15‚ 1986 Marriott Corporation The idea of repurchasing shares was no stranger to Bill Marriott by January 1980. Almost five million shares of common stock had been repurchased on the open market by Marriott Corporation during 1979 at a total cost of $74 million and an average price of $15.16 in the belief that they were undervalued—a belief that still was not fully reflected in the market price. At $19 5/8‚ the stock was selling at only six
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The increase in the evolving demographics are showing that India is going to remain as a nation which contributes the largest workforce within the next decades. The main dividend of India’s population is the young group of people. This factor gives india the required potential to become the global hub and also a huge consumer and producer for goods and services all over the world.Although India has a huge amount of working-age group of population it is not being enough for it to keep up its economic
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studies have established a very close link between the two and concluded that it does exist (Denison 1990; Gordon & DiTomaso 1992; Kotter & Heskett; Petty et al. 1995; Wilderom & Vanden Berg.) Variety of definitions have been used to define “Organisation Culture” In simple words it maybe well defined as the customs‚ behaviours and artifacts that the members of society use to communicate with the world from one another and is transmitted to one another through the mode of culture. The surroundings
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those who accurately reflect the society as a whole. A recognized leader in this effort is Marriott International. Marriott has a top down approach to workplace diversity that has been a recipe for success from its beginning through is 84 year history up until today. Marriott has is a world leader in hotels and diversity and that be expressed in this paper. Diversity in the workplace in practice‚ Marriott International Diversity is an important aspect in today’s workplace in order for the best
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