Marriott corporation: the cost of capital executive summary j willard marriott started marriott corporation in 1927 with a root beer stand, expanding it into a leading lodging and food service company with sales of over $6 billion by 1987. The marriott corporation sold its hotel assets to limited partners to reduce assets and in this manner the return on assets it is increased which results in increased profitability invest in projects that increase shareholders’ value.
Marriott corporation is diversified company in the lodging, restaurant and contract services its lodging business unit consisted of managing the operation of 361 hotels of a variety of star ratings its restaurant business unit ran and owned a handful of fast food and diner chains. Marriott corporation case analysis dan cohrs, vice president of finance at the marriott corporation has to prepare his annual recommendations for the hurdle rates for the firm’s three major lines of business – lodging, contract services and restaurants. Free essay: marriott corporation: questions for hbs case “marriott corporation: the cost of capital” 1) are the four components of marriott's financial.
Marriott corporation essay marriott corporation: the cost of capital simrith sidhu, amy-jane miocevich, jacques rousset, jing tao task one: marriott uses the weighted average cost of capital (wacc) to measure the opportunity cost for investments. Marriott functions in three main areas: lodging (marriott hotels and resorts, marriott suites, residence inns, courtyard hotels, and fairfield inns), contract. Read this essay on marriott corporation come browse our large digital warehouse of free sample essays get the knowledge you need in order to pass your classes and more only at termpaperwarehousecom.
The four components of its financial strategy are steady with this growth objective its growth objective is to remain a leading growth company and developing appropriate investment opportunities in its different business sections in 1987, marriott’s sales grew more than 20% and its return on equity was at 22% that shows the sales and earnings [. Marriot corporation : the cost of capital in front of dan chores is the issue of recommending three hurdle rates for each of marriott corporation's three divisions, which have significant effect on the firm's financial and operating strategies as well as its incentive compensation.