Marriot Corporation: Cost of Capital By Xue Fan Background Marriott Corporation began in 1927 with J. Willard Marriott’s root beer stand. Over the next 60 years‚ the business grew into one of the leading companies in industry in United States. In 1987‚ Marriott’s sales grew by 24% and its return on equity stood at 22%. Sales and earnings per share had doubled over the previous 4 years‚ and the company strategy was aimed at continuing this trend. Marriot Corporation had three major lines
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Do Animals Have Any Rights? Should They Be Used For Research? April 18‚ 2013 Do Animals Have Any Rights? Should They Be Used For Research? If you walked in a childrens hospital and seen kids sick and on the verge of dying‚ will you kill ten rats to save those children? is it animal research or animal cruelty? There are over a million animals who die each year such as rats‚ monkeys‚ rabbits and so far because of experimentation‚ and for fashion but there are millions of
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PAULA L. PERALTA PRECIS#1: The Ever Changing Role of Marketing in the Corporation Some people believe that just by being in business they will get clients or customer. They ascribe to the theory that “if they build it they will come”. It rarely happens that way. If you don’t let people know about your business‚ not only do you lose but so do they. This is where marketing comes in. Tracing back the history of marketing it is evident that managerial implication has only started in the
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Research Experience Paper Psychology 101 Arielle Mason Professor C Maile October 15‚ 2013 Article: Obey at Any Cost? Many times we are given commands or orders from a higher authority or power some of which we do not agree with or follow. This is because we use our moral values and human emotions to determine whether they were right or wrong. But there is a time where we may judge and not agree while others may not pass a judgment and be in agreement. In the study of Psychology we
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April 11‚ 2012 Marriot Corporation: The Cost of Capital Background: Marriot Corporation began in 1927 with J. Willard Marriot’s root beer stand. Over the next 60 years‚ the company grew into one of the leading lodging and food service companies in the United States. Marriot has three major lines of business: lodging‚ contract services‚ and restaurants. Lodging operations included 361 hotels‚ with over 100‚000 rooms that generated 41% of sales in 1987 and 51% of profits. Contract services
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Do developed countries have a higher obligation to combat climate change? • This debate has been stimulated in large part by the Kyoto Protocol‚ which exempted developing nations such as China and India‚ from the same emissions-reductions obligations as developed countries. The principle underlying Kyoto is known as “common but differentiated responsibilities”‚ which continues as a centre piece principle for those calling on Developed countries to assume a greater responsibility. China‚ India‚ and
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Marriott Case 1. What is the WACC for Marriott Corporation? Cost of Debt Tax Rate We determined this number by taking income taxes paid/EBITDA = 175.9/398.9 = 44.1% Return on debt There are two clear components of debt: fixed and floating. In order to get the fixed debt rate we took the interest rates on fixed-rate government securities and added the premium
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Question 6 What is the cost of capital for the lodging and restaurant divisions of Marriott? Answer: The cost of capital for lodging is 9.2% and the cost of capital for restaurants is 13.1% Calculation: WACC = (1-t) * rd * (D/V) + re* (E/V) Where: D= market value of DEBT re = aftertax cost of equity E = market value of EQUITY V = D+E rd = pretax cost of debt t = tax rate To calculate the formula above‚ we need to determine each component Tax rate (t) 56% --> calculated before LODGING
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As “Deaconess Clinic” decided to outsource its cafeteria food service‚ the advantages of this decision are: i. Because of outsourcing‚ employees were more expertise. ii. Employees felt connected with the organization because of the family atmosphere in the kitchen and cafeteria which increased their productivity. iii. They did not feel isolated because of the friendly environment. iv. The clinic can avoid incurring fixed cost. v. As the cafeteria was inside the organization‚ management
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Outsourcing Table of Contents: No. Desc. Page No. 1. Outsourcing 3 1. Method 3 2. Summary 3 4. Overview/history of company 3 5. Reasons for outsource 3 6. Offshore or domestic 4 7. Pros and Cons of outsourcing to third world countries 5 8. Alternative recommendations 7 9. Conclusions:Is outsourcing a good thing 8 10. References 9 Method: Investigation on outsourcing within business. The outsourcing of trainer companies within developing countries with particular emphasis on Nike outsourcing
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