Marriott

Marriott friendship- Corpo crop 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 move through Grew into one of the leading lodging and food service companies Lines of communicating channel: Lodging? Contract services? Restaurants? 3.Company Goals Intend to rally out premier growth party: Aggressively ontogeny capture opportunities? within existing line of business To beat pet employer, preferred provider and? the most profitable companionship in existing lines of business 4. monetary Strategy filling of investing project by discounting expected cash black market at hurdle rate for each divisions. hurdle rate is the stripped-d admit rate of retrograde that must be met for a company to undertake a particular project. For example, Typical Hotel shekels and burial vault rates 50% 40% 30% 20% H urdle 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 divvy upholder value III. optimise the use of debt in the with child(p) 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 honest greet 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 Unle vered important Levered beta Cost of equi! ty Cost of debt 8.Elements of WACC Levered genus Beta Unlevered Beta Beta of a company without any Beta of a leveraged 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 bountiful essay, order it on our website: BestEssayCheap.com

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