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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To : President‚ Marriott Corporation From : FLO299 Subject : Marriott Corporation – The Cost of Capital Date : April 6‚ 2010 The Importance of the Cost of Capital The cost of capital is important as it forms the basis for Marriott’s investing and financial decisions. By understanding and knowing the cost of capital‚ Marriott is able to select relevant investment projects for the company‚ determine incentive compensation‚ and repurchase undervalued shares when needed. The returns
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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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those who accurately reflect the society as a whole. A recognized leader in this effort is Marriott International. Marriott has a top down approach to workplace diversity that has been a recipe for success from its beginning through is 84 year history up until today. Marriott has is a world leader in hotels and diversity and that be expressed in this paper. Diversity in the workplace in practice‚ Marriott International Diversity is an important aspect in today’s workplace in order for the best
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Brief overview of Marriott group of hotels Marriott group of hotels is association with International Tourism partnership. It is an association with organizations having a participation of organizations inside the travel and tourism industry. The point of International Tourism Partnership is to give the capacity and information to the improvement of handy answers for a dependable business. The establishing part of International Tourism partnership is Marriott. It has helped towards the ’practical
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Marriott International‚ Inc. is a widely recognized and diversified global lodging firm which engages in the franchise and operation of hotels‚ timeshare properties‚ and housing properties. It operates through the following business segments: North American Limited-Service; North American Full-Service; and International. The firm operates hotels the management model‚ franchise model‚ and the leased and owned model. The company operates 16 brands that cover full-service‚ extended-stay hotels‚ and
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Case #3 “Marriott Corporation” The Cost of Capital” What is the weighted average cost of capital for the Marriott Corporation and cost of capital for each of its divisions? – What risk-free rate and risk premium did you use to calculate the cost of equity? – How did you measure the cost of debt? – How did you measure the beta for each division? Solution What risk-free rate and risk premium did you use to calculate the cost of equity? – Risk-free rate proxy The risk-free
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Company Research Assignment The reason for our research is to analyze the recruitment practices of a medium sized company. The subject of our assignment is Marriott Hotels – the Toronto airport location at 901 Dixon Road‚ Toronto. The Toronto Airport Marriott Hotel was a previous employer of Caroline Baird’s‚ who remembers this hotel as one of excellence with many good programs in place from hiring and recruiting to training and development. They are an example of a company
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Executive Summary The case‚ Marriott Corporation: The Cost of Capital (Abridged)‚ concentrates on making decisions based on capital asset pricing model (CAPM) and the weighted average cost of capital (WACC) to measure the opportunity cost for investments. Dan Cohrs‚ the Vice President of Finance of Marriott Corporation‚ had to deal with making recommendations for the hurdle rates at Marriott Corporation and its three divisions which are lodging‚ restaurant and contract services. In calculating
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Harvard Business School 9-282-042 Rev. September 15‚ 1986 Marriott Corporation The idea of repurchasing shares was no stranger to Bill Marriott by January 1980. Almost five million shares of common stock had been repurchased on the open market by Marriott Corporation during 1979 at a total cost of $74 million and an average price of $15.16 in the belief that they were undervalued—a belief that still was not fully reflected in the market price. At $19 5/8‚ the stock was selling at only six
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