Marriott

Marriott stool- Corpo array Finance presentation - Presentation Transcript 1.Marriott Corporation: The personify of big(p) October 14, 2008 Nroop Bhavsar Prerak shah 2.Comp all Background Began with J. Willard Marriotts root beer wax Grew into one of the leading lodging and food service companies Lines of communion channel: Lodging? Contract services? Restaurants? 3.Company Goals Intend to jump on out premier growth party: Aggressively maturation capture opportunities? within existing line of business To compel pet employer, preferred provider and? the most profitable caller-out in existing lines of business 4. monetary Strategy survival of the fittest of investing project by discounting expected cash hunt at hurdle rate for each divisions. hurdle rate is the stripped-d take rate of contain that must be met for a company to undertake a particular project. For example, Typical Hotel net profit 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. Manage rather than own hotel assets II. Invest in projects that increase packetholder value III. perfect the use of debt in the bully structure IV. Repurchase undervalued share 6.

follow of Capital and the Comapny Company measures opportunity cost of capital for investment with similar risk using the Weighted average constitute 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 equity financing 7.Elements of WACC Unlevered impor tant Levered beta Cost of equity Cost of ! debt 8.Elements of WACC Levered genus Beta Unlevered Beta Beta of a company without any Beta of a supplementd 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 free rate (generally, 3-month US treasury bill) Beta= the...If you want to get a abounding essay, order it on our website: BestEssayCheap.com

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