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
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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-
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supported by the DGIS/TMF-BirdLife funding scheme Guidelines on Stakeholder analysis Contents 1. How to identify the stakeholders ................................................................................................................. 1 2. Stakeholder analysis.................................................................................................................................... 1 3. The Stakeholder Analysis Report .........................................................
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Hotel Industry/Marriott Analysis Analysis of the Hotel Industry Industry Profile The need for lodging for individuals after traveling a great distance from home has been around since mankind began living inside of dwellings. To serve this need‚ hotels‚ or as they were more commonly referred to‚ inns‚ were created as a means to accommodate these travelers. In fact‚ the first recorded inn in America opened in 1607. Since their introduction they have grown in complexity‚ amenities‚ price‚ and
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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
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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
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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
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Marriott International‚ Inc. is a widely recognized and diversified global lodging firm which engages in the franchise and operation of hotels‚ timeshare properties‚ and housing properties. It operates through the following business segments: North American Limited-Service; North American Full-Service; and International. The firm operates hotels the management model‚ franchise model‚ and the leased and owned model. The company operates 16 brands that cover full-service‚ extended-stay hotels‚ and
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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
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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
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