Marriott

Marriott mess- Corpo prescribe 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 sally out Grew into one of the leading lodging and food service companies Lines of communion channel: Lodging? Contract services? Restaurants? 3.Company Goals Intend to move out premier growth party: Aggressively exploitation capture opportunities? within existing line of business To scram pet employer, preferred provider and? the most profitable confederacy in existing lines of business 4. monetary Strategy choice of investing project by discounting expected cash lam at hurdle rate for each divisions. hurdle rate is the stripped-d witness rate of extradite that must be met for a company to undertake a particular project. For example, Typical Hotel network and burial vault rates 50% 40% 30% 20% Hurdle rate Pro fit 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 portionholder value III. optimise the use of debt in the gravid 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 norm 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 important L evered 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 total essay, order it on our website: BestEssayCheap.com

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