The Zykan v. Warsaw Community School Corporation and Warsaw School Board of Trustees was a case regarding the limiting and prohibition of textbooks‚ removing books from the library and deleting courses from the curriculum. The case was disregarded by the district court‚ and was brought to the Court of Appeals for the Seventh Circuit. Ultimately‚ the court ruled that the school had a right to establish whatever curriculum that it wanted‚ but it was not allowed to restrict learning. The student’s right
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Marriott Corporation Abstract Marriott Corporation has three divisions – lodging‚ contract services and restaurants – with dissimilar operations. The company uses three separate hurdle rates for the three divisions to value the proposed projects. It is believed that this strategy is more appropriate that using a single firm-wide discount rate because the operations of the three divisions differ drastically. However‚ the company has to ensure that the company uses an appropriate discount rate for
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Marriott in Budapest Case Study Report 2011 Table of Contents Introduction…………………………………………………………………………1 Problem Identification ……………………………………………… …….1 Analysis…………………… Recommendations…………………………….. Summary………………………………………………. References…………………………………………………………... INTRODUCTION Budapest is the capital city of Hungary and along the shore of the Duna River downtown‚ the infamous Marriott Hotel is situated. Until Marriott showed an interest in this establishment
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Marriot Case Marriot use the Weighted Average Cost of Capital to estimate the cost of capital for the corporation as a whole and for each division‚ and the hurdle rate is updated annually.(WACC = (1-Tc) * (D/A) * R[D] + (E/A) * R[E]) Marriot’s Tax Bracket = 175.9/398.9 = 44% Division’s asset weight to the corporation: Lodging = 2777.4/4582.7 = 0.59 Contract = 1237.7/4582.7 = 0.28 Restaurant = 567.6/4582.7 = 0.13 Risk free rate is 30 years T-Bond = 8.95% (Lodging use long-term debt)
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Issue In this assignment‚ we are asked to compute the WACC of Marriott Corporation and each of the company’s three divisions. Our approach is outlined in the next section. We made a series of assumptions regarding either the available data or the missing information. This has been explained below‚ in a separate section. Approach We applied the following formulae to calculate the WACC: Our assumptions are explained in the next section. The table below presents the approach for calculations
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Case Study: Marriott Corporation The Cost of Capital Teresa Cortez Keith Gemmell Brandon Papsidero Robin Reschke October 28‚ 2013 Table of Contents 1. Are the four components of Marriott’s financial strategy consistent with its growth objective? ..................................
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Marriott Corporation: Case Introduction Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base‚ ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging‚ contract services‚ and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive
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a. What business is Marriott in? Are the four components of Marriott’s financial strategy consistent with its growth objective? b. How does Marriott use its estimate of its cost of capital? Does this make sense? c. What is the weighted average cost of capital for Marriott Corporation? • What risk-free rate and risk premium did you use to calculate the cost of equity? • How did you measure Marriott’s cost of debt? 1. Are the four components of Marriott ’s financial strategy consistent
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Marriot Case Brief 1. What is the weighted Average Cost of Capital for Marriot Corporation? WACC for Marriott Corp is 11.89 WACC of divisions: Lodging 10.29‚ Restaurant 13.49‚ Contract Services 13.615 a) What risk-free rate and the risk premium did you use to calculate the cost of equity? We used 8.95% as the risk free rate (LT Government Debt) and the MRP we used was 7.43%‚ which means are expected market return is 8.95+7.43=16.38% b) How did you measure Marriott’s cost of debt? We added
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systems that were similar in nature. Additionally‚ competitors such Starwood hotels began developing member loyalty programs that resulted in far higher guest engagement‚ (5% of guests amassed to roughly 20% of the company’s revenue). Nonetheless‚ Marriott is very intuitive when it comes to business intelligence‚ but its competitive advantage with analytics is quickly eroding and it needs to start focusing on other aspects of the business to remain the industry leader. 2. Describe your company’s position
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