Marriott

Marriott Corporation- Corpo ramble Finance unveiling - Presentation Transcript 1.Marriott Corporation: The embody of big(p) October 14, 2008 Nroop Bhavsar Prerak shah 2.Comp all Background Began with J. Willard Marriotts root beer jump Grew into champion of the leading lodging and fare service companies Lines of communication tune: Lodging? Contract serve? Restaurants? 3.Company Goals Intend to ride place premier growth companionship: Aggressively developing curb opportunities? within existing withdraw of business To become court employer, preferred provider and? the well-nigh profitable come with in existing lines of business 4. pecuniary Strategy Selection of investiture project by discounting evaluate cash flow at hurdle rate for individually divisions. hurdle rate is the stripped rate of return that must be met for a association to undertake a limited project. For example, Typical Hotel pay and burial vault rates 50% 40% 30% 20% Hurdle rate Profit rate 10% 0% 1 2 3 4 5 6 -10% -20% 5.Elements of Financial Strategy I. mete out rather than own hotel assets II. locate in projects that increase stockholder value III. Optimize the manipulation of debt in the capital structure IV. Repurchase undervalued share 6.

number of Capital and the Comapny Company measures luck hail of capital for coronation with similar risk victimisation the Weighted Average appeal of Capital. WACC= (1-t)*rD*D/V + rE*E/V Where, t= corporal tax rate rD= cost of debt D/V= % of debt backing rE= cost of beauteousness E/V= % of fair-mindedness financing 7.Elements of WACC Unlevered big Levered beta Cost of virtue Cost of debt 8.Elements of WACC Levered genus important Unlevered important Beta of a company without any Beta of a leveraged required debt (Published beta) return Unlevering a beta removes the Hamadas formula: financial effects from leverage BL= Bu [1+ (1-t) D/E] 9.Elements of WACC rE: cost of equity (CAPM) rE= Rf + Beta*(Risk premium) where, Rf= risk sluttish rate (generally, 3-month US exchequer bill) Beta= the...If you want to maintain a full essay, ordering it on our website: Ordercustompaper.com

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