What is the weighted average cost of capital (WACC) for Marriott Corporation? WACC = (1 - τ)rD(D/V) + rE(E/V) D = market value of debt E = market value of equity V = value of the firm = D + E rD = pretax cost of debt rE = after tax cost of debt τ = tax rate = 175.9/398.9 = 44% Cost of Equity Target debt ratio is 60%; actual is 41% [Exhibit 1] βs = 1.11 βu = βs / (1 + (1 – τ) D/E) = 1.11/(1 + (1 – .44) (.41)) = 0.80 Using the target debt ratio of 60%: βTs = βu (1 + (1 – τ) D/E)
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Case Analysis - Atlantic Computer – A bundle of pricing options Introduction – Atlantic computer is the largest player in the hi-tech IT hardware industry and a major player in the server market. Based on the fast growth of the internet and with it the proliferation of corporate websites and file sharing systems‚ huge demand is predicted in the basic server segment market over the next few years. In order to make the most of this opportunity‚ Atlantic has come put with a new product called Tronn
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system is based on a range of steel intermodal containers (also "shipping containers").These containers are built to standardized dimensions and can be loaded and unloaded‚ stacked‚ transported efficiently over long distances‚ and transferred from one mode of transport to another. Thus‚ it provided an economic way to ship 90% of the world trade goods across the globe and as a result has benefited society in providing for a truly open market to buy and sell goods. Cebu is home to national and international
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debt is used to finance the company. This financing approach put a heavy debt burden on Marriott‚ resulting in huge amount of debt repayments. Upon figuring out such heavy debt issue‚ Marriot broadened its potential lenders‚ opened up the financial market‚ refinanced with long term debts as well as to change financial policy to lower the leverage. In 1975‚ Marriott shifts its hotel strategy from ownership to leasing and management contracts where they have a comparative advantage. Besides‚ Marriott
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and society (in general) in relation to the case of Gordon Wood. The law’s primary objective is to provide justice for all parties involved in legal disputes; however‚ as demonstrated through the Gordon Wood case it is evident that the law has been ineffective in balancing the rights of those concerns and deliver just outcomes. This is illustrated by the factors of delivery of just outcomes‚ time and complexity which when applied to the Gordon Wood case demonstrate the law’s failure to protect the
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volume and 70% by value are seaborne. India has 11 major ports‚ 19 Medium port‚ and 187 minor ports along 7‚517 km long Indian coastline. It is strategically located as a major maritime nation due to its long coastline that flanks important global shipping routes. The National Transport Policy Committee (1980) recommended the following principles for declaration of a national waterway. It should possess capability of navigation by mechanically propelled vessels of a reasonable size. It should have
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Debate over marijuana in the state of Alabama Deborah Dean HUM/111 January 26‚ 2014 Cathy Alder Debate over marijuana in the state of Alabama Legalizing of the use of marijuana has been a hot issue this past year in many states of the United States. Since I live in the state of Alabama‚ I was wondering what my state is doing. The 2014 Legislative session started January 14‚ 2014. In the session there was a bill introduced for making marijuana a lesser crime of offense. The HB76 bill would change
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value in sequel rights‚ how they will be able to make money off of these investments in the rights‚ or understand why studios would be willing to sell them. Then‚ we will address the timing of the offers and why it is so important‚ especially in this case. Next‚ we will look at the “fair” value for these films using two different approaches. The first approach is the net present value of the entire set of 99 films for 1990. We will look at three different sets of assumptions with the net present value
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Battle of the Atlantic The Battle of the Atlantic played a very significant part in World War Two. In World War Two‚ after the escape atDunkirk and the inspiration of the Battle of Britain‚ the Battle of the Atlantic was Britain ’s next nightmare. The Battle of the Atlantic was "the only thing that ever frightened me." Winston Churchill. As an island Britain needed to bring in a vast amount of food and military equipment to survive the war. The German submarine force (U-boats) severely damaged
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Strict Liability | Alabama Law | | Shannon Martin | 12/22/2011 | | Alabama Tort Law is the only truly comprehensive resource on tort law in Alabama. With expert discussion of proof requisites and defenses‚ it covers all the elements of each tort actionable under Alabama law. It provides the information necessary to determine if there is a case and what is needed to prove or defend it. Alabama Tort Law not only provides up-to-date coverage of relevant case law and analysis‚ it also
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