Here is the synopsis of our sample research paper on MARRIOTT’S COST OF CAPITAL. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 5 page paper examines a case study prepared for Marriott and determines what the best financial decision would be for this company in order to maximize shareholder wealth.
Page Count:
5 pages (~225 words per page)
File: D0_MTmarrio.rtf
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Unformatted sample text from the term paper:
on the firms financial and operating strategies, both in terms of forward movement and lost momentum. His main problem, therefore, is to decide what, exactly, to do with the hurdle
rates for each division of Marriott, which includes lodging/hotels; contract/food services and restaurants. In determining hurdle rates, first its a good idea
to determine what, exactly a hurdle rate is. Generally, "hurdle rate" is defined as the minimum expected return a company will consider in becoming involved with investment opportunities. Basically, if
a company is involved in many investment opportunities, the hurdle rates will be lower, but the cost is paid in the staff and other resources that would be necessary in
order to keep the company running. In simple financial terms, if hurdle rates increase, i.e., if the minimum expected return that Marriott receives increases, this reduces Marriotts growth. If the
hurdle rates decrease, this means that the minimum expected return is smaller, and therefore, Marriotts growth either remains steady or increases. On the
surface, Cohrs response should be obvious - he should decrease the hurdle rate, as increasing it decreases amount received from a project. However, decreasing hurdle rates means that what Marriott
would need to invest in opportunities that might yield less profit. Cohrs, however, is tied by the fact that whatever he decides also must support Marriotts mission to the shareholders
which is that "We intend to remain a premier growth company. This means aggressively developing appropriate opportunities within our chosen lines of business - lodging, contract services and related businesses.
In each of these areas, our goal is to be the preferred employer, the preferred provider and the most profitable company." To
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