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
Premium Balance sheet Stock Asset
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
Premium Weighted average cost of capital Finance Investment
Darden Case Analysis February 14‚ 2010 Table of Contents ORGANIZATION MISSION …………………………………………………………. 1 CORPORATE OBJECTIVES ………………………………………………………….1 Strategic objectives………………………………………………………………………1 Financial Objectives ……………………………………………………………………..2 CORPORATE-LEVEL. STRATEGIES……………………………………………….3 BUSINESS-LEVEL STRATEGIES ……………………………………………………4 EXTERNAL ANALYSIS ………………………………………………………………4 Opportunities…………………………………………………………………………….4 Threats …………………………………………………………………………………
Premium Darden Restaurants Brand
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-
Premium Investment Actuarial science Risk aversion
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
Premium Economy Affect Money
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
Premium Stock Hotel chains Stock market
Their reputation derives from the conduct of the Marriott associates who create this professional business environment on a day to day basis. The hotel industry can be a very unpredictable environment. Employees at the Marriott are confronted with situations on a daily that test their values‚ beliefs and judgments. The reputation of the Marriot is built upon the actions of their employees at these times. It is vital for each member of the Marriott staff to understand the legal and ethical responsibility
Premium Marriott International
Aditya Puttigampala Intro to Marketing 10/1/13 Darden Case Analysis 1. Using the full spectrum of segmentation variables‚ describe how Darden segments and targets the sit-down dining market. The types of segmentation include geographic‚ demographic‚ psychographic‚ and behavioral segmentation. For geographic segmentation‚ Darden has all of its Longhorn Steakhouse restaurants in the eastern half of the United States but they are trying to expand to the west coast. This is a great idea because
Premium Darden Restaurants Food Emotion
STRATEGIC HOSPITALITY MANAGEMENT MODULE PERIOD: 2 / 2013 - 2014 WEEKLY REPORT Theory Report Introduction This report discusses the theory of four strategy lenses described in the book “Exploring strategy” in chapter 1. Next to the descriptions‚ realistic hospitality related work examples are provided in chapter 2 to clarify the importance of these strategy lenses using the three angles of lens. Chapter 3 clarifies the work context of the establishment ‘Marriot’s Surf
Premium Marriott International Strategic management
Análisis Caso Marriott Corporation: Costo de Capital En el caso se plantea que Marriott utiliza cuatro elementos en su Estrategia Financiera las cuales apuntan a un crecimiento objetivo. Por lo que‚ se pregunta‚ ¿Son consistentes estos elementos con su crecimiento objetivo?‚ y para ello se realiza el siguiente análisis. I. Análisis de los Elementos de Estrategia Financiera: Primero debemos identificar que el alto crecimiento que busca Marriott es igual a maximizar el valor de la empresa y para
Premium Estado