...HEC Lausanne Corporate Finance Case 3: Marriott Corporation (A) Spring Semester 1. Project Chariot is proposed by MC’s CFO, Stephen Bollenbach, to face the troubles that Marriott Corporation (MC) is currently facing. A glimpse of history is useful to understand the current situation. MC’s main business is to develop hotel properties, to sell them to outside investors and to conclude long-term contracts. In the 70’s MC began to finance its expansion by major borrowings under the impulsion of the new president J.W Marriott, Jr. that abandoned the conservative financing policy of its predecessor (and father). In 1981 the Economy Recovery Tax Act (ERTA) gave enormous incentives for companies to invest (tax write-offs were given for each $ invested in real estate). This pushed MC to develop even more its activities for instance in lodging services or in full service compact hotel. Even though ERTA was ended in 1986 MC continued its massive investments, which lead to a significant accumulation of debt. This was not an issue since the revenue growth was able to sustain the also growing interest payments. Until the drop of income in 1989, which froze capital expenditures. Unfortunately for MC, it was followed by the real estate collapse in 1990 that left MC with massive interest payments for properties that no one wanted to buy anymore given the current economic environment. This situation results in an extremely limited ability for MC to raise funds in the capital market...
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...Case Study: Marriott Corporation The Cost of Capital Teresa Cortez Keith Gemmell Brandon Papsidero Robin Reschke October 28, 2013 Table of Contents 1. Are the four components of Marriott’s financial strategy consistent with its growth objective? ...................................................................................................................... 1 2. How does Marriott use its estimate of its cost of capital? Does this make sense? ...... 3 3. What is the weighted average cost of capital for Marriott Corporation? ..................... 4 4. What type of investments would you value using Marriott’s WACC? ........................ 6 5. If Marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what would happen to the company over time? ......... 7 6. What is the cost of capital for the lodging and restaurant divisions of Marriott? ........ 8 7. What is the cost of capital for Marriott’s contract services division? How can you estimate its equity costs without publicly traded comparable companies? ................ 11 APPENDIX I – Math Utilized to Derive WACC for Marriott .......................................... 13...
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...Detailed Lesson Plan (Grade 7) 1. Objectives After providing the necessary materials, each student; 1.1 investigates the different types of solutions: -unsaturated -saturated -supersaturated 1.2 performs an actual activity about solubility. 1.3 values the common solutions that can be found at home and can be used in daily living. 1. Learning Tasks 2.1 Topic: Solutions 2.2 Concept: The unsaturated solution has a less amount of solute to be dissolved. The saturated solution can hold no more solute to be dissolved. The supersaturated solution cannot hold more solute. 2.3 Materials 2.3.1 Textbook/Other Reference -Science Grade 7: Matter (K-12 Curriculum), pages 1-16 - http://www.infoplease.com/encyclopedia/science/solution-heat-solution.html 2.3.2 Instructional Materials - video clips, materials enumerated for the experiment and activity sheet. 2. Methodology 3.1 Daily Activities 3.1.1 Prayer/ Greetings Christ Jesus Whom we open our eyes, may you be there; When we open our ears, may you be there; When we open our mouths, may you be there; When we open our diaries, may you be there. Help us to see with your eyes; Help us to hear with your ears; Help us to speak your truth in love; Help us to make time for you… for others… for ourselves. Amen. 3.1.2 Checking of Attendance 3.1.3 Checking of Assignment 3.2 Preparatory Activities 3.2.1 Review Teacher: Class...
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...Osmosis Introduction: Tissues are made up of cells that have the same structure and function. In this experiment osmosis will be measured in a piece of tissue. Water potential can be determined by the changes in dimensions of the tissues when it is placed in solutions of different concentrations. Research Question: What is the effect of sucrose solution on potato cells Hypothesis: Osmosis will increase when the solutions are less concentrated with sucrose Variables: Dependant: Osmosis Independent: Length Materials: 12 large test tubes or specimen tubes with bungs, marker pen, potato chip cutter, scalpel, fine forceps, 3 watch glasses or petri dishes, ruler, 6 labeled beakers one containing 50cm^3 of distilled water and other four containing 50cm^3 of 0.2 mol dm^-3, 0.4 mol dm^-3, 0.6 mol dm^-3 and 0.8 mol dm^-3. Method: 1- Using the potato chip cutter, cut 24 chips from the potato. Cut the chips into 5cm lengths using the scalpel. Be as accurate as possible. Place 4 chips into each of six, labeled test tubes, one test tube for each of the different sucrose solutions. Pour in enough of each respective solution to cover the potato tissue. Put a bung in each one of the test tubes and label this series “potato”. 2- Repeat the method using the apple fruit or turnip root, putting four chips of tissue 5cm long into each of the second series of test tubes. Label these tubes “apple” or “turnip”. 3- Leave the tubes for at least an hour 4- After at least...
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...FUNDAMENTALS OF SURFACE MODES: ¥ COLLOIDS ¥ means ÒglueÓ in Greek ¥ was coined in 1861 by Thomas Graham. ¥ ¥ ¥ ¥ ¥ WHAT IS A COLLOID? usually consists of two phases; one continuous phase in which the other phase is dispersed. Size of particles: larger than the size of molecules and small enough for the dispersed phase to stay suspended for a longer period of time. ¥ No strict boundaries for the size limits. OFFICIAL DEFINITION ¥ In 1903 Wolfgang Ostwald formulated the official definition of a colloid: ¥ a system containing entities having at least one length scale in between 1nm and 1µm. ¥ For smaller particles there is no distinct boundaries between the phases and the system is considered a solution; ¥ for larger entities the particles will fall to the bottom due to the gravitational force, and the phases are separated. 1 2 3 MESOSCOPIC PHYSICS ¥ The particle size is in the so-called mesoscopic range in between the macroscopic and microscopic limits. LARGE INTERFACIAL AREA ¥ One very important quality of the colloids is the large interfacial area between the dispersed and the continuous phases. WHAT EFFECTS HAS THIS? ¥ This means that interface effects and hence the electromagnetic surface modes, are very important for the properties of the colloids. ¥ It costs energy to create this much surface and the particles would clump together if this isnÕt prevented. ¥ Usually the particles are charged and hence repel each other. 5 6 4 Four states...
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...encouraged to ask question/s that is related to this module and that you don’t know the answer to and want it to be answered. The question/s can be answered by anyone in class. The instructor will allow sometime for other students to answer the question/s before contributing. You can post your questions in MODULE 2 forum under the Discussion Forums. Complete Assignment #2. The assignments are posted in the ASSIGNMENTS area of the website. Even though the homework assignments are not to be turned in and graded, you are strongly encouraged to do them to understand the material and to prepare for quizzes and tests. A complete solution to this assignment will be posted on the course website under ASSIGNMENTS on Thursday (Sept 4th). You are encouraged to review the solutions and compare your work to the solution, ensuring that you understand the reasons the solutions appear as they do. You are also encouraged...
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... * Has no secretary The most important problem would be catching the flight for the meeting in Chicago since it’s an emergency and work related. Solutions: Getting work done for the day on the air plane on the way to the meeting. Call the secretary to find out at least some of the info for the meeting. Item#2 Problems: * Internal politicking in the company * Finding someone to replace F.T. Dickenson * Dealing with eliminating his overtime hours The two most important problems would the politicking, because someone else may feel the same way and decide to leave the company too. Also, finding someone to replace him and do his unfinished work in such a short period of time. Solution: Search for a new employee ASAP. Item#3 Problems: * Workers threatening to walk out over a co-worker * 10 votes to dismiss Foreman Edward George The workers are the most important asset to the company, so their interest should be first. Second, you have to figure out what to do about the votes to dismiss Ed George. Solutions: Talk to Ed George about his problems with his co-workers. Hold a meeting and get even more workers involved in the voting process, the take another vote. Item#4 Problems: * Overloading which can result in interruption of electrical power. * Not being reachable for Southern Power Solution: Contact Southern Power ASAP. See if they could come out and help with the problem. Item#5 Problem: * Balancing your work and his until Wednesday ...
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...Name Date Class COLLIGATIVE PROPERTIES OF SOLUTIONS Section Review Objectives • Identify the three colligative properties of solutions • Describe why the vapor pressure, freezing point, and boiling point of a solution differ from those properties of the pure solvent. Vocabulary • colligative properties • freezing-point depression • boiling-point elevation Part A Completion Use this completion exercise to check your understanding of the concepts and terms that are introduced in this section. Each blank can be completed with a term, short phrase, or number. In a solution, the effects of a nonvolatile _______ on the properties of the solvent are called _______. They include _______ point and vapor pressure _______, and boiling point _______. In each case, the magnitude of the effect is _______ proportional to the number of solute molecules or ions present in the _______. Colligative properties are a function of the number of solute _______ in solution. For example, one mole of sodium chloride produces _______ as many particles in solution as one mole of sucrose and, thus, will depress the freezing point of water _______ as much. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Part B True-False Classify each of these statements as always true, AT; sometimes true, ST; or never true, NT. 11. When added to 1000 g of water, 2 moles of a solute will increase the boiling point by...
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... it increases the water movement out of the plant by a process called transpiration. When there is a shortage of water, the guard cells well get smaller and close the stomata, and the transpiration process will move slower. The osmolarity would be tested with solute concentrations ranging from 0.0 M to 0.6 M. The concentrations increased 0.1 M each time and the solute used was sucrose. The goal of this experiment was to determine which concentration had the least effect on the potato after being incubated. This information helped us estimate the osmolarity of the potato tuber tissue. Our group hypothesis is that the osmolarity of the potato will have the concentration with the 0.1 M solution. This hypothesis is based off the predicted outcome that smaller molarity concentrations will have the least effect on the potato. The more solute added to a solution decreases the concentration of water in most cases (Kosinski). The decrease in water concentration would then lead to a lower weight of the potato tuber once it has finished incubating. Methods & Materials: For experiment A you will need the following items: 1 large potato tuber Forceps petri dish razor blade DI water metric ruler 7 250 mL beakers/ or disposable cups balance that weighs to the nearest 0.01g sucrose...
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... The purpose of the experiment was to see how abrasion works and how it affects rocks and minerals with the use of sugar cubes. I measured the mass of all 5 sugar cubes together then placed it in a jar with a lid on and shook it 20 times, as I was shaking the jar my lab partner recorded the mass that was taking with the number of times I shake the jar. After which we drew the shape of the sugar cubes when it was poured out on a paper, then we calculated the percent change. This procedure was repeated 5 times and with each trial the shaking time was increased by 20. After all the calculations was done, we graphed the data. After each trial the size and mass of the sugar cubes reduced, this was due to the pressure put on the jar as we were shaking it. Supposing little pressure was put on the jar, the outcome would have been different and would have shown little abrasion effects on minerals and rock so therefore this made me conclude that, for abrasion to have a greater impact on minerals and rocks the pressure of the water or wind must be strong to push the minerals against each other. Another factor that contributes to how abrasion works could be the amount of space the minerals and rocks have because during the experiment, the sugar cubes pumped into each other and the walls of the jar and since there wasn’t enough space for movement the sugar cubes weathered and reduce in size with the mass decreasing which I believe wouldn’t occur if there were to be enough space for the sugar...
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...The data solute concentration of the egg was found by taking the average percent change in mass for each percent solute concentration used in the lab and putting the data into the graph(Mass vs. Solute Concentration Over 3 Days). According to the data from the class, the solute concentration inside an egg is 25.1%. The egg would be in an isotonic solution at 25.1% solute concentration. This is when the concentration outside the egg is equal with the concentration of water inside the egg. The point of equilibrium is the point at which the trendline crosses the x-axis. At this point, the egg would no longer gain or lose mass. If the concentrations are the same inside and outside the egg, diffusion will not be able to take place. All averages...
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...Analysis of Carcinus maenas ingestion rates Materials and methods Part 1 - Control experiment Two mussels (mytilus edulis) were opened and the mussels inside cut into 4 pieces, producing 8 pieces of roughly equal size in total. A balance was then tared with a weighing boat placed on it. Each piece of mussel flesh was placed individually and in turn into the weighing boat to be weighed. The pieces were then placed into a plastic bucket half filled with filtered seawater. The weight, time of weighing and time of immersion into the bucket were all noted down for each piece of mussel. The position of each piece of flesh inside the bucket was also taken down so as not to mix them up. One of the eight pieces was left in the bucket for the duration of the experiment until being removed and weighed at the end and was written down as “the last”. Another piece was removed frequently throughout the experiment and was given the name “the one”. The last 6 pieces were each removed once and weighed at regular intervals to provide a range of submersion times. The experiment was run for roughly 20 minutes. The method for removing and weighing the pieces of mussel was kept consistent throughout the experiment. Each piece was removed, blotted clear of any excess water and weighed. If the piece of mussel was “the one”, it was returned to the bucket of seawater, if not, it was kept aside and moist for the crab feeding (Part 2). Once all of the pieces were removed and weighed (multiple times for “the...
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...Salt of Sugar: Which One Dissolves Faster in Different Liquids Salt and sugar are used in many different ways. They are different in taste and purpose. Salt is use to make foods and vegetables saltier. Sugar is used to make food, candy, and fruits sweeter. Salt and sugar are also used in drinks (mostly sugar). So to find out which one dissolves faster, they will be in different liquids in different temperatures. Hypothesis: sugar will dissolve faster than salt. The liquids used are tea, water, and club soda. These liquids should have a different taste, color, odor, and purpose (O’Leary, Shelly, 91). Water molecules take up most of the room in the container (O’Leary, Shelly, 88). A solution is a mixture of a solute and solvent (O’Leary, Shelly, 88). During the experiment, keep a cup of plain liquid to compare (O’Leary, Shelly, 93). Nancy K O’Leary and Susan Shelly stated, “If you use mile or orange juice, for example, you won’t be able to watch salt and sugar dissolve,” (O’Leary, Shelly, 91). All liquids must be clear (O’Leary, Shelly, 92). Water is a solvent (O’Leary, Shelly, 90). BodnerResearchWeb.com stated, “Sugar dissolves in water because energy is given off when the slightly polar sucrose molecules form intermolecular dons with the polar water molecules.” (Bodner Research Web). The different temperatures are boiling (warm), cool, and room temperature. All of the liquids must be in the same temperature, or temperature will have to be used as...
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...headlines for each of the following lessons. Make sure that the headline is school appropriate, relevant to each lesson, and cited using MLA format. Lesson 1: Introduce the environment. Lesson 2: Identify the problem. Lesson 3: Identify the solutions. (What tools are available to perform the project?) Lesson 4: Evaluate the solutions. (If there are assumptions, what are they?) Lesson 5: Evaluate the ethical and social issues. (What ideas are compatible or incompatible with the problem and solutions?) Lesson 6: Propose the best solution. Lesson 7: Conclude your project experience. B. Write one paragraph for each of the above lessons. The lessons are directed to someone who has no experience in the field. Each lesson should be completed by the assigned due date. One Time Development: (This is a combination of the ongoing task.) A. In a term paper format (two+ pages), provide a formal proposal for the project analyzing the following (bring together all the lessons you worked on throughout the course): 1. The Problem 2. The Solutions Identified 3. The Solutions Evaluated 4. The Ethical and Social Issues 5. The Best Solution B. This paper will be traded with one assigned group member after receiving my feedback for editing improvements. Each student will read the assigned proposal, name 3 positive comments, ask 3 questions, and give 3 recommendations for their classmate. C. The final...
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...Osmosis and Diffusion “You made me ink” In this experiment we placed Glucose in a clear bag, and placed the bag in Iodine and waited for it to change colors indicating that the Glucose and Iodine reacted to one another. We also placed an egg in salt water solution and weighed it every 15 minutes. The results for the glucose and iodine were inconclusive because our experiment never changed colors nor did we get a chance to do the second half. Diffusion is the movement of molecules from a region of higher concentration to a region of lower concentration. Osmosis’s the diffusion of water molecules across a semi permeable membrane. I think that when the glucose interacts with the Iodine the color will change only a slight bit. Our results were inconclusive because we didn’t actually get a chance to see the reaction of the interaction, but were informed that the solution in the bag will turn purple and the solutions in the beaker would turn blue/orange. On the egg experiment our results showed that the egg placed in ten percent salt water weight decreased into the negatives, and the egg in the distilled water weight increased over 15 minute increments. As shown in table 1. Egg in distilled water Egg in salt water Time(n) | Weight(g) | Percent change | Time(n) | Weight(g) | Percent change | 0 | 87.5 | 0 | 0 | 85.8 | 0 | 15 | 88.1 | .68 | 15 | 84.6 | -1.4 | 30 | 88.4 | .34 | 30 | 83.9 | -0.83 | 45 | 88.8 | .45 | 45 | 83.5 | -0.48 | 60 | 88.5 | .11 | 60...
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