Case Marriott Cost Of Capital

Case Report #6: Marriott pot Memo From: discipline:Marriott Corporation : The Cost of Capital Problem:Marriott Corporation needs to determine competent hurdle range for separately of its iii sections. These rates testament be used to discount property flows of potential future(a) projects. Options:1. Compute the WACC under the classical tax arrangement for the company as a whole and for each division of the company 2. stupefy recommendations for hurdle rates of Marriotts different divisions to carry by discounting take over cash flows by the break off hurdle rate for each division Recommendation: attached the policies and strategies related with hurdle rates and cost of capital, Marriot Corporation should keep abreast their target debt/value grammatical construction because it will minimise their weighted average cost of capital. epitome:Marriot Corporation is a 1927 US-based company specialized in the hotel direction industry. Its o perations and crossing line possess expanded advantageously in the stick up 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 saucily 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 crystalline lens to remain a premier growth company. In fact, their line of products organisation goals consist of keeping a significant growth tone by setting consistent stage business strategies and development appropriate investment opportunities in their different business divisions. In the uniform line of thought, Marriott is determined to develop and to enhance its seat in each division. Marriott Corporation has 3 major lines of business: lodging, contract services and restaurants. In prescribe to achieve their goal, the managers of Marriott have genuine a well-r! ounded financial strategy with tetrad main decisions. The four...If you want to get a full essay, order it on our website: BestEssayCheap.com

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