Mariott Cost of Capital Essay

2502 Words Mar 2nd, 2015 11 Pages
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|Marriott Corporation: |
|Cost of Capital |

Concepts Covered

Cost of Equity: Cost of Equity is the minimum rate of return a firm must offer to the shareholders. This is necessary as the shareholders who have taken a risk in investing would be waiting for returns.

The formula for Cost of Equity is given
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Willard Marriott. The company became one of the leading lodging and food service companies in the U.S. in 60 years.

Marriott had three major lines of business: lodging, contract services and restaurants. Lodging operations included 361 hotels, with more than 100,000 rooms in total. Hotels ranged from the full-service, high-quality Marriott hotels and suites to the moderately priced Fairfield Inn. Contract services provided food and services management to health care and educational institutions and corporations. It also provided airline catering and airline service through its Marriott In-Flite

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