Financial Decision Analysis~Marriott Corporation Case Study Executive Summary – Q5 – Hurdle Rate Analysis Hurdle rates‚ the weighted cost of capital that projected cash flows must exceed for initiatives to be considered‚ vary within Marriott Corporations due to their unique industry risk levels and capital structures. They use this number to determine which projects to accept‚ to adjust the rate at which the firm grows and as a measure for compensation within each business area‚ and as incentive
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Exercise 2.4 SHARE ISSUE‚ OPTIONS Prepare the journal entries in the records of Jordan Ltd in relation to the equity transactions in 2014. JORDAN LTD 25/3 Cash trust – shares Dr 750 000 Application – shares Cr 750 000 (Applications for shares) Cash trust – options Dr 10 000 Application – options Cr 10 000 (Applications for options) 2/4 Cash Dr 610 000 Cash trust – shares Cr 600 000 Cash trust – options Cr 10 000 (Transfer on issue of shares and options) Application – shares
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The 1950’s-60’s70’s-80’s Miranda Moultrie Nixon Back Again The United States presidential election of 1968 was the 46th quadrennial presidential election‚ held on Tuesday‚ November 5‚ 1968. Moon Shot On July 21‚ 1969‚ President Nixon spoke from the Oval Office to Apollo 11 astronauts Neil Armstrong and Edwin Aldrin at the Sea of Tranquility on the Moon. Apollo 11 was the spaceflight that landed the first humans on the Moon‚ Americans Neil Armstrong and Woodstock A village in New York state
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Loyalty Review Boards On March 22‚ 1949 President Harry S. Truman signed an executive order‚ often referred to as the “Loyalty Order” that established Loyalty Review Boards as a way to protect the government from communist influence. The order gave the government the power to test Federal employees loyalty to the United States. It all started during the cold war and was put in place to keep America safe from communism. President Truman wanted to make sure that the United States was not going to
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AND COST ESTIMATES xiv DETAILED COST ESTIMATE FOR THE CONSTRUCTION OF TWO-STOREY RESIDENTIAL BUILDING WITH ROOF DECK Location: Naga City Owner: Ryan M. Bajaro A. SITEWORKS Item Description | Quantity | Unit | Unit Cost (Pesos) | Total Cost | 1. Clearing and Grubbing | 630 | m2 | 50 | 31‚500 | 2. Excavation | 140 | m3 | 500 | 70‚000 | 3. Gravel Bedding | 30 | m3 | 850 | 25‚500 | 4. Madrigal Soil (Fill) | 49 | m3 | 350 | 17‚150 | 5. Labor Cost (30%) |
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Dr. Virginia Noy Hellen Keller’s CASE Theories of Personality Andrea Sambuccetti 1) Her process of learning was operant conditioning. To learn‚ Helen Keller was exposed to an stimuli‚ an object in one hand‚ and at the same time‚ to a finger-spelling in the other hand that later she was guided to imitate. At first‚ she did not found an association between the object in one hand and the meaning that was spelled in her other hand. But one day‚ the experience was repeated and she started to found
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MAIN SOURCES OF EQUITY AND DEBT FOR PROJECTS The main sources of equity and debt can be divided into two groups of lenders and sponsors. Group 1 – commercial lenders‚ include: 1. Banks; 2. Institutional lenders; 3. Commercial finance companies; 4. Leasing companies; 5. Individuals; 6. Investment management companies; 7. Money market funds. Groups 2 – commercial sponsors‚ include: 1. Companies requiring the product or service; 2. Companies supplying products or raw materials to the project;
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expected value of the company’s debt in one year‚ with and without the expansion? .3*14=4.2 low .5*14=2.8 Normal .2*14=2.8 High (million dollars) 4.2+7+2.8= $14 million of debt 3. One year from now‚ how much value creation is expected from the expansion? How much value is expected for stockholders? Bondholders? Value Created from Expansion | Difference from company values of expanding and not expanding (56‚700‚000-16‚550‚000) | 40‚150‚000 | Minus the equity | 4‚500‚000 | Value expected
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6 years‚ so we will use 6 years as the lease term. Then the initial direct cost is factored into total of 72 months‚ which will be 83 a month. Then we use the PV of the future payments to find out the amount paid over the lease term for the first 5 years and for the last renewed year because the lease amount is different. Also we use 5% for the incremental borrowing rate. % Acc. % Total$ n Pay $ Ind. Cost/yr Yearly cost PV/payment 5 yr 40% 100% 20‚000 5 4‚000 1‚200 5‚200 4‚074 6 yr 30% 60% 25
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1. Marriott uses its’ cost of capital estimates to create a hurdle rate to effectively run operations. Marriott uses these estimates to operate its four financial strategies. These are managing rather then owning hotel assets‚ investing in projects that increase shareholder value‚ optimizing the use of debt in the capital structure and repurchasing undervalued shares. If the company uses its overall WACC it may have divisions accept projects with returns below their respective WACC which will result
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