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’s three divisions and for the firm as a whole. Marriott should find the hurdle rates for its divisions separately because its divisions operate in separate industries and therefore face different business risks. Marriott’s vice president says that increasing the hurdle rate by 1% would decrease the present value of project inflows by 1%. Since finding appropriate hurdle rates is critical to accepting or rejecting projects‚ Marriott should be precise by calculating and using division-specific
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Harvard Business School 9-298-101 Rev. March 18‚ 1998 Marriott Corporation: The Cost of Capital In April 1988‚ Dan Cohrs‚ vice president of project finance at the Marriott Corporation‚ was preparing his annual recommendations for the hurdle rates at each of the firm ’s three divisions. Investment projects at Marriott were selected by discounting the appropriate cash flows by the appropriate hurdle rate for each division. In 1987‚ Marriott ’s sales grew by 24% and its return on equity stood at 22%
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John Willard Marriott September 17‚ 1900 – August 13‚ 1985 Born on September 17‚ 1900 in Marriott Settlement‚ Utah‚ as the eldest son of a poor farmer‚ J.W. Marriott was said to have learned to ride a horse before he could walk. Early in his upbringing‚ Marriott was held to a very strict and high standard of conduct from his father. His father also gave him responsibility at an early age making him a sheepherder on the farm to help his family. At the age of 19‚ he preached the gospel as a Mormon
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EXECUTIVE SUMMARY 961 Beer: Launching a Lebanese Brewing Company To the attention of xxx Developing business in the brewing industry as thousands of tradition‚ always face of intense competition from existing competitors as well as new entrants. In additional‚ any manufacturers have difficult in expending production capacities and resources. This report aims to recommend how to continue growing business without compromising on quality in high competitive market and limited production capacities and
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THE INTELLIGENT INVESTOR A BOOK OF PRACTICAL COUNSEL REVISED EDITION B E NJAM I N G RAHAM Updated with New Commentary by Jason Zweig An e-book excerpt from To E.M.G. Through chances various‚ through all vicissitudes‚ we make our way. . . . Aeneid Contents Epigraph Preface to the Fourth Edition‚ by Warren E. Buffett A Note About Benjamin Graham‚ by Jason Zweig Introduction: What This Book Expects to Accomplish COMMENTARY ON THE INTRODUCTION iii viii x 1 12 18 35 47
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Negotiation Strategy Article Executive Summary Jeanpiero Gonzalez MGT/445 Organizational Negotiations Mrs. Mauri Hawkins July 11 of 2012 Summary The best alternative to a negotiated agreement is what every organization needs to fulfill their wants and needs. This is an advantage because they clench a clear target to which they can match any assigned agreement. The first article explains that the bargaining process and cultural awareness of a given country have a profound
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Marriott Corporation: The Cost of Capital Executive Summary J. Willard Marriott started Marriott Corporation in 1927 with a root beer stand‚ expanding it into a leading lodging and food service company with sales of over $6 billion by 1987. At the time‚ Marriott had three main lines of business‚ lodging‚ contract services and restaurants‚ with lodging generating about 51% of company’s profits. The four key elements of Marriott’s financial strategy were managing hotel assets rather than owning‚
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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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COMPANY BACKGROUND BR is a global chain of ice cream parlors founded in Glendale‚ California by Burton Baskin and Irvine Robbins‚ ice cream enthusiast brothers-in-law‚ whose passion inspired what is now the world’s largest chain of ice cream specialty shops. What was once a selection of 31 flavors—Baskin-Robbins "31®" stands for a different ice cream flavor for each day of the month—has grown to more than 1‚000 in its flavor library. "We sell fun‚ not ice cream." Today‚ Baskin-Robbins is the world’s
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