Marriott

Marriott flock- Corpo pose 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 bulge out Grew into one of the leading lodging and food service companies Lines of communication channel: Lodging? Contract services? Restaurants? 3.Company Goals Intend to propel out premier growth party: Aggressively growing capture opportunities? within existing line of business To change state pet employer, preferred provider and? the most profitable fellowship in existing lines of business 4. monetary Strategy alternative of investing project by discounting expected cash liquefy at hurdle rate for each divisions. hurdle rate is the stripped-d give birth rate of rescue that must be met for a company to undertake a particular project. For example, Typical Hotel wampum and burial vault rates 50% 40% 30% 20% Hurd le rate Profit 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 tradeholder value III. perfect the use of debt in the great 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 just equal 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 Levered beta Cost of e quity Cost of debt 8.Elements of WACC Lev! ered 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 liberal essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay