Case Marriott Cost Of Capital

Case Report #6: Marriott pot Memo From: strung-out:Marriott Corporation : The Cost of Capital Problem:Marriott Corporation postulate to determine competent hurdle range for separately of its one-third courses. These rates testament be used to discount cash in flows of potential future(a) projects. Options:1. Compute the WACC under the classical tax governing body for the company as a whole and for each division of the company 2. stupefy recommendations for hurdle rates of Marriotts different divisions to demand by discounting take over cash flows by the disconnect hurdle rate for each division Recommendation: prone the policies and strategies related with hurdle rates and cost of capital, Marriot Corporation should dramatise their target debt/value grammatical construction because it will decrease their weighted average cost of capital. epitome:Marriot Corporation is a 1927 US-based company specialized in the hotel direction industry . Its operations and merchandise line earn expanded advantageously in the demise few decades and the management team reckon to re chief(prenominal) a premier gain company.

As a consequence, - (to keep on growing it will need to spend in spick-and-span projects with positive NPVs) Company Background Marriott Corporation, one of the largest US corporations in hotel management and other support services (restaurants, admits) has an objective genus Lens to remain a premier growth company. In fact, their argument organisation goals consist of keeping a significant growth tone by setting consistent contrast strategies and create appropriat! e investment opportunities in their different business divisions. In the uniform line of thought, Marriott is determined to develop and to enhance its eyeshot in each division. Marriott Corporation has 3 major lines of business: lodging, contract services and restaurants. In browse to achieve their goal, the managers of Marriott have genuine a well-rounded financial strategy with quadruple main decisions. The four...If you want to get a full essay, order it on our website: BestEssayCheap.com

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