Professional Documents
Culture Documents
Marriott Corporation
Marriott Corporation
Nroop Bhavsar
Prerak shah
Company Background
• Lines of business:
Lodging
Contract services
Restaurants
Company Goals
40%
30%
0%
1 2 3 4 5 6
-10%
-20%
Elements of Financial Strategy
• Unlevered beta
• Levered beta
• Cost of equity
• Cost of debt
Elements of WACC
• Bl= Bu [ 1 + ( 1- T) D/E ]
= 1.11 [ 1 + 0.56 * 0.6/0.4 ]
= 2.04
• Bl= Bu [ 1 + ( 1- T) D/E ]
= 1.09 [ 1 + 0.56 * 2.85 ]
= 2.83
WACC
10.00%
9.00%
8.00%
7.00%
6.00%
5.00% WACC
4.00%
3.00%
2.00%
1.00%
0.00%
Marriott ( Whole ) Lodging Contract Restaurants
Analysis & Conclusion