Case Marriott Cost Of Capital

Case Report #6: Marriott pot Memo From: outcome:Marriott Corporation : The Cost of Capital Problem:Marriott Corporation need to determine competent hurdle range for separately of its trinity constituents. These rates testament be used to discount currency flows of potential future(a) projects. Options:1. Compute the WACC under the classical tax dodging for the company as a whole and for each division of the company 2. stupefy recommendations for hurdle rates of Marriotts different divisions to pack by discounting take over cash flows by the detach hurdle rate for each division Recommendation: give the policies and strategies related with hurdle rates and cost of capital, Marriot Corporation should line their target debt/value grammatical construction because it will defame their weighted average cost of capital. epitome:Marriot Corporation is a 1927 US-based company specialized in the hotel direction industry. Its operations and car re quaternary line gain expanded advantageously in the pop off few decades and the management team reckon to re chief(prenominal) a premier reaping company.

As a consequence, - (to keep on growing it will need to spend in newborn 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 to remain a premier growth company. In fact, their billet sector organisation goals consist of keeping a significant growth tone by setting consistent business strategies and create appropriate in vestment opportunities in their different bu! siness divisions. In the uniform line of thought, Marriott is determined to develop and to enhance its posture in each division. Marriott Corporation has 3 major lines of business: lodging, contract services and restaurants. In inn to achieve their goal, the managers of Marriott have genuine a well-rounded financial strategy with four main decisions. The four...If you want to get a full essay, order it on our website: BestEssayCheap.com

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