Case 1 -- Marriott [Questions]


Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ars or longer)? Justify. 2. Risk‐free rate: Marriott’s restaurant and contract service divisions can be thought of as having project lives of around ten years, its lodging division and Marriott as a whole have longer economic lives. Which is the more appropriate risk‐free rate to use? Would you use the current (spot) government interest rate or the historical average? Justify. 3. There are three measures of D/V for Marriott available in this case: 58.8% in Exhibit 1, 41% in Exhibit 3, and 60% in Table A....
View Full Document

This note was uploaded on 06/09/2012 for the course FNCE 203 taught by Professor Christianopp during the Winter '12 term at UPenn.

Ask a homework question - tutors are online