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Mariott Corp case
Essay specific features
Written by:
Cheryl B
Date added:
September 11, 2015
Level:
University
Grade:
A
No of pages / words:
4 / 1008
Was viewed:
6352 times
Rating of current essay:
Essay content:
To use this WACC it must be assumed that the cost of capital of the company's individual business units and their share within Marriott's operations remain constant.
The cost of debt, assuming that Marriott's credit rating remains at the same level, has a debt premium of 1.30% above the risk free rate...
displayed 300 characters
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The risk free government interest rate with maturity of 30 years was at 8.95% in 1988. Since this concerns long-term debt we are using the 30 year risk free rate. Therefore the cost of debt equates to 10.25%.
Marriott's corporate tax rate can be calculated as income tax over income before income tax...
displayed 300 characters
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