Marriott Corporation: Cost of Capital Case Questions Each Question carries 5 points

1) Discuss Marriott’s financial strategy – what are the opportunities, what are the risks. Why is the hurdle rate so important for Marriott? Do you see parallels with Marriott’s business model and any other firm in today’s lodging industry? – Adam

2) Calculate the WACC of Marriott as a whole. Justify your choice of numbers. Saunaz & Kaylee

1. What is the cost of equity?
2. What is Marriott’s cost of debt?
3. What is Marriott’s WACC?

3) Can Marriott use a single corporate hurdle rate to evaluate investment opportunities in each of its lines of business? Why not? What happens if they do? Liwen Liu

4) Calculate WACC of Marriott’s individual divisions. Justify your choice of numbers. Rohan & Kaylee

1. Lodging division
2. Restaurant division
3. Contract Services division (this requires some imagination)

Guidelines:

1) Since the company is a going-concern with a long horizon, use long-term rates when estimating cost of debt for the entire company.

2) The relationship between asset beta and equity beta, where E is equity value and V is total value is given by: (This formula assumes debt-beta is zero.)

3) Assume a tax rate of 34%.

4) Arithmetic averages are better estimators of expected returns than geometric averages. Discuss this within your group and we will examine why in class.

5) Obtain the risk free rate from Table B and market risk premium from Exhibit 5.

6) Your report cannot exceed 5 pages in total. Handwritten reports will not be accepted

Law

In the scenario listed below there are at least four alleged crimes and at least one possible civil action. Review the scenario and identify these crimes and civil action.

  In a 3 – 4 page paper (excluding title and reference pages), apply principles of criminal law to criminal justicepractice.

  Show an understanding of the civil liabilities of criminal justice agencies and practitioners.

  Cite case law regarding the possible civil action that could be taken against the police officer, the  department, and the city.

Scenario:

Police Officer Jones, in full uniform, was walking the midnight shift in a high-crime area at approximately 2:00 AM and is approached by a civilian who told Officer Jones she had been robbed and beaten by someone wearing a red shirt and white pants. The victim’s shirt was blood soaked from a severe laceration to her head and lip. She said the perpetrator was wearing a ski mask so she was unable to determine the gender/sex of the individual, as well as the race/ethnicity. However, she was able to inform Officer Jones that the perpetrator was approximately 5’8” tall and had a gun. The perpetrator stole her wallet and was holding it when he/she fled the scene, which was only a minute or two earlier. Officer Jones called for medical assistance and for backup as well.

While waiting with the victim for medical personnel to arrive, Officer Jones spotted an individual that partially fit the description about a block away from the scene. Though it was very dark, Officer Jones observed the white pants and dark shirt. Officer Jones walked toward the individual, leaving the victim unattended. Medical and backup had not arrived. When Officer Jones was approximately 20 feet away he identified himself as a police officer and told him in a loud, clear voice, “Stop, Police!

However, the individual refused to comply with Officer Jones’s commands and continued to walk away from Officer Jones. Officer Jones again shouted. “Stop, Police,” and the individual stopped. As the individual stopped, he turned and faced Officer Jones, at which point saw a large bulge in the subject’s right front pocket. The subject, who was now approximately 7 feet from Officer Jones, refused to keep hands where Officer Jones could see them. The subject reached into his right front pocket and began to draw his hand out of his right front pocket. Officer Jones drew his weapon and fired at the individual, hitting him in the left shoulder.

The individual fell to the ground and Officer Jones approached him and called for additional medical personnel. Officer Jones located a baggie filled with smaller baggies each filled with what appeared to be Cocaine and a cell phone. The individual was taken to the hospital and was labeled as stable.

Detectives investigating the incident discovered that the person shot was not the perpetrator in the alleged strong-armed robbery. They also discovered that the victim lied and was actually involved in a domestic violence incident and did not want her husband to be arrested.

(PLEASE NOTE: This assignment will require outside research. Use at least three credible sources.)

You may consult the Library, the internet, the textbook, other course material, and any other outside resources in supporting your task, using proper citations in APA style.

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