Marriott Case Notes

rporation a. What business is Marriott in? Are the four components of Marriotts monetary dodge consistent with its growth objective? b. How does Marriott handling its melodic theme of its equal of capital? Does this make sense? c. What is the plodding second-rate cost of capital for Marriott Corporation? What peril-free rate and risk premium did you white plague to calculate the cost of equity? How did you stair Marriotts cost of debt? 1.Are the four components of Marriotts financial strategy consistent with its growth objective? 2.How does Marriott use its estimate of the cost of capital? Does this make sense? 3.Using the CAPM, estimate the weighted average cost of capital for a. Marriott Corporation b. The lodging course of study c. The restaurant division 4.Towards respond #3 a. What risk-free rate and risk premium did you use to calculate the cost of equity? Why did you choose these poetry? b. How did you estimate the required rate of return on the debt of the club and on the divisions? Should the debt cost differ across divisions? Why? c. Did you use arithmetic or geometric averages to measure average rank of returns or premia? Why? d. How did you measure the beta of each division? Of the firm? e. Should you take taxes into account? How?

5.What is the cost of capital for Marriotts catch services division? How can you estimate its equity be without publicly traded comparable companies? 6.If Marriott used a single bodied hurdle rate for evaluating investment opportunities in each of its lines of business, what would determine to the company over time? 7.Gives students the opportunity to explore how a company uses the Capital Asset Pricing Model (CAPM) to write in code the cost of capital for each of its divisions. The use of Weighted comely Cost of Capital (WACC) formula and the mechanics of applying it atomic number 18 stressed. 8. If students are familiar with the WACC formula, then the material can be cover in one class, but... If you want to get a all-embracing essay, order it on our website: Orderessay

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