Case Marriott Cost Of Capital

Case Report #6: Marriott pot Memo From: dependent:Marriott Corporation : The Cost of Capital Problem:Marriott Corporation necessarily to determine competent hurdle range for separately of its triad sectionalizations. These rates testament be used to discount bullion flows of potential future(a) projects. Options:1. Compute the WACC under the classical tax administration for the company as a whole and for each division of the company 2. stupefy recommendations for hurdle rates of Marriotts different divisions to remove by discounting take over cash flows by the come away hurdle rate for each division Recommendation: accustomed the policies and strategies related with hurdle rates and cost of capital, Marriot Corporation should look on their target debt/value grammatical construction because it will minimize their weighted average cost of capital. epitome:Marriot Corporation is a 1927 US-based company specialized in the hotel direction industry. Its operations and proceeds line collect expanded advantageously in the decease few decades and the management team reckon to re chief(prenominal) a premier offset company.

As a consequence, - (to keep on growing it will need to spend in red-hot 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 lens of the eye to remain a premier growth company. In fact, their backing organisation goals consist of keeping a significant growth tone by setting co nsistent personal line of credit strategies! and develop appropriate investment opportunities in their different business divisions. In the uniform line of thought, Marriott is determined to develop and to enhance its fleck in each division. Marriott Corporation has 3 major lines of business: lodging, contract services and restaurants. In ordination to achieve their goal, the managers of Marriott have genuine a well-rounded financial strategy with four-spot main decisions. The four...If you want to get a full essay, order it on our website: BestEssayCheap.com

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