Marriot Questions - what kind of errors will be made What...

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Professor Kose John Marriot Case - Questions Use the following questions to guide your analysis: 1) What is the overall WACC for Marriot Corporation? (Use a tax rate of 34%). Should you use the current or the target leverage ratio to compute the WACC? Discuss. 2) What type of investments would you value using the company’s WACC? Discuss. 3) If Marriot used a single corporate hurdle (discount) rate for evaluating investment opportunities,
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Unformatted text preview: what kind of errors will be made? What would happen to the company over time? Is this good for shareholders? Discuss. 4) What are the WACCs for the lodging and restaurant divisions of Marriot? Should the debt and equity costs vary across divisions? Why or why not? 5) What is the WACC for the contract services divisions? How can you estimate that without publicly traded comparable companies?...
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