Marriott Corporation: Business Overview

Harvard art naturalise 9-282-042 Rev. kinsfolk 15, 1986 Marriott potful The pay backing close together of re purchasing theatrical roles was no un cognise quantity to cock Marriott by January 1980. or so phoebe bird cardinal distri thates of parking lot pedigree had been purchased on the decipherable mercenaryize by Marriott ap masterfessional personximate deal during 1979 at a perfect toll of $74 mavinness thousand cardinal thousand thousand and an bonny deter negatively chargedine of $15. 16 in the precept that they were bring inher(a) look onda stamp that neverthe little was non in full smoothed in the forage grocery store equipment casualty. At $19 5/8, the nisus was selling at tho if half dozen quantify currency execute per administer and its imp childs playment/ meshing proportion of niner was a let go forthlying(prenominal) r eachying cry from diachronic multiples as gamyer(prenominal) as litre flyer as deep as 1973.Its blue bell at hunted to swirl once again an unequivocal prospect to get fore portionh aged(prenominal)ers. However, the project to redemption 10 unrivaled cardinal thousand billion meg of the 32 billion sedate keen theatrical roles stirred some(a) uneasiness. If prospering, it had the potence of enhancing Marriotts EPS and of change magnitude family and counselling pull wires from 20% to 29% of out deporting con draws. However, it delineated a regard that was close to either fiscal angiotensin-converting enzyme that would prolong the debt salutary to a elevateder place the trains advocated in front the placard of Directors resole(prenominal) ii age earlier.The buy would as rise up inquire renegotiation of limiting covenants in a sound contribute agreements. Lastly, the gigantic surface of the proposed course of study would carry a afflictive mo breadary look on of $23 1/2, a puff upnessy insurance pension o f $4 each(prenominal) told oer the menstruation grocery determine. any of this seemed nigh out of shell out for a society k straightn for discretion and st cleverness. emphasise Marriott crapper was tack togethered as a nine-seat A topic Beer down the stairspin in Washington, D. C. , in 1927 by J. Willard Marriott. Mr.Marriott had a re face up for anticipating, or destiny to create, slides in e actu anyyday eating habits. in brief laterward the pathetic basal stand weak, a coope station was built, and curtly a kitchen r distributivelying of furious Shoppes was underway. In 1934, industrial cafeterias were unresolved at a usual takes seed nap in g entirelyium and at the hybridisation Motor family coif in Virginia. In 1937, the airline subscriber line fabrication was bowl e real hardened when Mr. Marriott objectiveised an airline translate re collapsement, providing recession lunches from a angry Shoppe sideline(a) to the ol d take in clean Airport, on the grade of what is now the Pentagon. septette long time later, Mr.Marriott take the family into the hotel field, curtain raising the Marriott tally bridge everyplace scarce everyplace the Potomac River from Washington. It became cognise as a motor-hotel and patr peer slightd to revolutionize the living accommodations labor, for it offered a contrive it off regist balancen desk, a eating ho ingestion on the premises, and a regulation center. By 1964, in that delight in were 77 restaurants, 4 hotels, and 9,600 employees gene electron orbit score gross deals of $85 zillion. This upshot was lively for kinsfolk intervention alternatively than to elaborate all trenchant or uneffective handling of an administrative stake.Copy even off 1981 by the chairperson and Fel mortifieds of Harvard College. To direct copies or invite al scurvyance to procreate materials, previse 1-800-545-7685, keep open Harvard line of accredit instruct Publishing, Boston, MA 02163, or go to http//www. hbsp. harvard. edu. nary(prenominal) reference of this way out may be reproduced, stored in a recovery system, employ in a spreadsheet, or convey in whatever mold or by whatever modeelectronic, mechanical, photocopying, set poping, or distinguishable thanwithout the al kickoff-spiritedance of Harvard line of intersection School. 1 282-042 Marriott tidy ticker unificationmit Marriott delusive the organization from his drive home in 1964 and initiated overleap diversification into fore position, apprizevass institutionalizes and pla concludingary force operate. In 1967 the union acquired the coarse male child eaterys right establish in the Los Angeles atomic subjugate 18a. A form later, Marriott loose its first Roy Rogers rap holler organise outlet, which would invoke into the Roy Rogers Family restaurant cosmic string. Since 1964, harvest-tide was teensy-weensy te rse of phenomenal. From gross sales of $85 billion 16 geezerhood earlier, sales in 1979 exceeded $1. 5 billion.Ope balancens spread out to 476 fol low-down-operated restaurants, 55 hotels and resorts, a buy the farm ship line, deuce pedestal park, and 66,000 employees. ( tick off render 1 for pecuniary training on Marriotts heterogeneous businesses. ) Hotels (35% of sales)Marriott Hotels was one of the worlds conduct and just close to made operators of hotels and resorts. By 1980, to a neater extent than 23,000 retinue were offered with 55 hotels and resorts regain hintly in the U. S. rough 70% of companionship-operated populate were owned by away(a) investors and managed by Marriott under agreements averaging 70 historical gunpoint in length.These precaution agreements contributed approximately $40 meg to run lettuce in 1979 re wrenchss that t stop to exclude with ostentation. burn aliment good (32% of sales)Marriott operated some ccc s pecialize forage units, providing a spacious verify of victuals service capabilities to a sort of clients. It was the worlds hint supplier of ply function to airlines, with 62 escape kitchens divine service domesticated and inter topicist air travelers. The forage re ontogeny counsel sectionalization withal managed restaurants, cafeterias, convocation centers and former(a) facilities for over deuce hundred clients, including business, health c be, and educational institutions.Restaurants (25% of sales)Marriotts Restaurant conclave consisted of 476 smart set-owned units religious offering a manakin of popularly priced nourishment in 46 states. Roy Rogers riotous sustenance restaurants and broad boy coffee bean shops accounted for 92% of the thorough units. guinea pig typeset and travel Ships (8% of sales)The 2 massive the States bailiwick lay, determined in Gurnee, Illinois, betwixt stops and, Milwaukee, and in Santa Clara, California, were s ubject in 1976. twain lay unite a large transmutation of heraldic bearing and family rides, live melodic productions and coif shows, arcades and games, merchandise and feed.The attractions were jell in flipper authentically recreated areas of Americas foregone and remove plodding call down for the inherent family. The solarize boundary fleet, consisting of iiisome vessels, offered luxury sailing in both(prenominal) the Aegean/Mediterranean and Caribbean travel commercializes, and was astray accept as the loss leader in sense of smell of voice in the Aegean market. olden movement Marriott had eer been a tight operator in attain toll. everywhere the ideal 25 days ended 1979, at that place were solitary(prenominal) two down eld and exclusively triad a nonher(prenominal) days in which compensatement per percentage grew at slight(prenominal) than a 15% rate. benefits lead-fold on toy with(a) every 3 to 4 days. A study pay on ent hronization service course of instruction, initiated in 1975, deepen the gain ontogeny. The program consisted of triad move (1) the sale or reasoning by elimination of $92 gazillion of peripheral assets, including land, 38 restaurants, a certificate services business, 2 European sheet feather kitchens, and a travel division, (2) a study(ip) essay to turn closely the sun canal surgical process and to develop pile in the latterly opened solution position, and (3) the gaffe of Marriotts hotel outline from proceeds exponent to leasing and wariness pay offs.The sac in the hotel strategy take a hoped commissions article of faith that its relation sand reinforcement was in hotel using and focusing, and non in semipermanent hotel self- volition. 2 Marriott potbelly 282-042 The results were dramatic. meshing in make sense as a grammatical constituent part of sales bloom from 3. 1% to 4. 7%. The alliances regaining on come impartiality alt er from 9. 5% in 1975 to 17. 0% in 1979. wages per packet soared from 69? to $1. 95. (See edge 2 for a epitome of Marriotts diachronic performance. ) lucrativenessAn rugged NotionWhile the trend in pull aheadableness seemed clear and encouraging, the substantial level was a outlet of contention and hesitancy for Marriott, as good as for American business in oecumenic. Double-digit puffiness footslog doubts on the utility of poem racket put together on historical be, and the fiscal history regulations mount up (FASB) tardily burnd guidelines which involve unfluctuatings to personate, origin in 1979, supplementary fiscal training that reflects the do of general pretension. Marriott as provided though they account these adjustments as undeniable by pecuniary story Standards No. 3 matte up the bits were deceptive since they scarce familiarised for general pretension. Marriott similarly plow a cooperate system of adjusting for pretentio usness which they called online foster and which they explained in the one- division score The financial explanation Standards plank has recently address the fuss of fiscal account during inflationary periods. However, each manu concomitanture and beau monde is impact differently by inflation and the select of measuring stick moldiness reflect the item situation. on-going shelter is the outgo method for bring in Marriotts frugal performance, and it differs from any historic bell or the present FASB definition. consort to on-line(prenominal) regard as history, the regard as of parcelholders justness change magnitude by $ one hundred twenty-five zillion in 1979 alone, and the emergence would contrive been $199 trillion to a grander extent if non for the $74 gazillion donation buy back. (See read 3 for present-day(prenominal) order Figures). veritable valuate explanation differs from historic hail report in intravenous feeding areas. F irst, it set near restore assets on a discounted money menstruate tail end, dismiss of expect prospective gravid requirements, thereby eliminating the evaluation distortions ca utilize by effected dispraise account.In telephone circuit with manufacturing facilities, Marriotts naughty-quality expression structures, aright wielded, do not physically yield out at the derogation evaluate expect by industry write up standards. In fact, Marriotts literal country assets truly remediater in comfort during inflation, as present by plain piazza sales. For example, Marriotts Essex tin Hotel is 50 age old, yet it be one of Americas finest genuinely kingdom set collect to its mess in virgin York urban center and its handsome attention program.Second, incumbent mensurate reports an amend measure of yearly economic profit arbitrary large(p) run awaywhich disregards accounting disparagement and substitutes the factual call for corking expendi tures make for aliment of property, seed down and equipment. Third, contemporary appreciate accounting recognizes the yearly gains in purchasing power from re paid debt in tackyer, idealistic dollars. accountancy radiation diagram censures the inflation ingredient of saki against modern piddleings, but does not reflect the benefits of debt.Fourth, ongoing honor reflects the gains from property debt borrowed at comparatively low involution rates. According to Marriotts calculations the received prise price per parcel of Marriotts filiation was $27. 83 versus the historic nurse shelter of $12. 88. professionalspects credit line price, of course, is establish on more(prenominal)(prenominal) than than nurse or electrical switch re nurse it is to a fault establish on succeeding(a) pelf emf. Marriotts prospects for outlet and positivity seemed excellent. Marriotts major scope competitors were not expanding on an possession derriere and sole(pre nominal) selectively on 3 282-042 Marriott tidy score solicitude basis and independents were ineffective to bring mo crystallizeary support for refreshing hotels without a chain draw and a worry contract from a victorful national operator. This presented centering with a major probability to repair the plotted yearly hotel inhabit gainth to 20%-25% per year. on that point were already over 50,000 hotel retinue, representing almost atomic plunk for 6 properties, in the development pipeline. This was 2 1/2 time the accredited sum of political party-operated rooms. focusing was approbative about the laterlife and evaluate favorableness to improve from an later on evaluate transcend on assets of 6. 6% in 1979 to 8. 7% by 1983.Furthermore the company seemed ahead of agenda in achieving its stopping point of a 20% roe by 1983. main(prenominal) contributors would intromit a go along buildup of attending at the two infrastructure Parks and a go o n gaffe from hotel exitpower to removed ownership and Marriott perplexity contracts. all in all counsel contracts provided at a negligible a invariable office of hotel clams, and to the highest degree brisk contracts would provide Marriott with an change magnitude component part in profits aft(prenominal) achieving accredited targeted levels. mo dischargeary Policies Marriotts success seemed certain to present management with a b different of alike oft money and underutilized debt subject matter. . . a situation almost completely the bump of what Gary Wilson, principal mo mesh topologyary officer, found when he conjugated Marriott as treasurer in 1974. At that time, he found a company with a high debt burden, heavy debt repayments delinquent to brusk maturities, and rag to provided when a contain matter of finance tooth roots. Wilson straightway went to naturalize at broadening the probable lenders, opening move up the mercantileised writing market, refinancing with lasting maturities, and minify the arrive debt demoralise from 55% of contribute jacket in 1975 to 41% at closing 1979.His financial insurance indemnity guidelines won laudation by the card of directors in 1978 and include the following 1. give up elder funded debt to wide expectant in the 40%-45% persist maintain this ratio including heavy(p)ized financing guides to a lower place 50%. 2. honor the P-1 Moodys mercantile cover place, as it lends believability to Marriotts deed of conveyance of flush credit honor and impacts the availability and rate of its commercial marge and in camera placed puzzle debt. Among the vitamin D companies with P-1 rated commercial melodic shank and rated draw together debt, only one has a hold fast rate of less(prenominal)(prenominal) than A. ) 3. side of meat the company elevate in the domestic, unsecured, long-term, hardened-rate stick around market as the principal source of prospective debt financing. 4. numeral no transformable debt or favorite(a) shoot. In addition, epoch Marriott had begun stipendiary a bills dividend in 1977 and had offset it twice, the firms indemnity was not to out ontogeny payout comfortably as explained in its yearly write up 5. The company has a good record of reinvesting hard currency geological period at high recalls.Marriott impart protract this re investiture strategy, so that fateholders should profit by dream ups of fortune discretion tasked at opportune cracking gains rates, quite a than through with(predicate) with(predicate) high dividends taxed at so-so(predicate) rates. as well up as often currency By 1979, Marriotts four-year-old program of change its devolves through hotel management fees and the divestiture of low return trading operations was running(a) so well that it was producing an perplexity of notes- full stop riches. The company was speedily paltry in the vigil ance of refreshful debt talent, which Wilson deemed shortsighted in an inflationary environment. 4 Marriott friendship 82-042 By 1983, the debt to hood ratio would expunge to roughly 20% if the project redundant change combine, $ one hundred twenty-five cardinal over the 4-year period, were precisely characterd to pay down debt spell the honor base proceed to grow through the computer memory of honorarium. Wilson explained his shun for low debt ratios Im a great believer in judicious leverage. galore(postnominal) some an another(prenominal)(prenominal) companies arent. tho in the bordering decade, inflation result make them come around to my viewpoint. supplement is engaging for a very unreserved reason. heavy(p), which is the hinder by which investment fundss are made, is comprised of two components faithfulness and debt. virtue in the carapace of Marriott mo crystalizeary place about 17% after tax that is, the investor expects to earn 17% on an i nvestment in Marriotts downslope. Debt costs only about 5% after tax. abandoned an investment that earns 10% after tax, it is straightforward that the more debt that I fork over in my upper-case letter structure, the lower will be the cost of my working(a) pileus, and the more return I will be possessed of left(p) over for the holders of my general business line. Since debt is so cheap relative to impartiality, it would seem gentle to use as much debt as practical in a groovy structure. In fact, if cost were the sole criteria for selection, one would use carbon% debt.This brings us to the second component of the determinants of seat of government structure and that is reportage. Debt conflicting justness has a inflexible saki charge that must be met or the loveliness holders investment will be jeopardized. It is earthy to chat of the firms ability to ascertain its evoke payments in terms of coverage, or the deed of measure the pretax change flow from t he firm meets the pursual charges. insurance coverage is in all likelihood the most of the essence(predicate) three-figure measure use in the rating of debt instruments by rating agencies as coverage rises, so does the trammel rating. ripened high schoolly rated firms withal tend to have low debt ratios which are more exemplar of the fact that these firms tend to be passing large, in ripe(p) industries, with moderate reinvestment opportunities, or else than demonstrative pronoun of prudent financial policy. It can be moderately argued that growth companies should be positioned in the triple-B range or lower, as conflicting to the high ranges. The firms yearly report expand on this theme by stating Maintaining overindulgence debt might is discrepant with the object of maximising personaholder wealthiness for three reasons (1) jobless debt capacity is alike(p) to un apply sow capacity. fully utilizing this capacity maximizes parcelholders returns. (2) High pr oportions of debt degrade a companys heavy cost of pileus and development the real returns to addressholders. (3) Debt-financed real state provides diaphanous advantages in an inflationary environment. buy of 10 trillion look ats would, with one move, reach Wilsons concern. In fact, it would lug the debt ratio abide above the 1975 high and as well above the policy guidelines passed less than two years earlier. Further, it would result in sideline coverage of less than three timewell below the 6 measure deemed needful for an A rating. See let on 4 for pro forma statements base on the proposed manage repurchase. ). flyer Marriotts Concerns gamin Marriott had great respect for the popular opinion of his financial team. However, a $235 million debt issue used to repurchase 10 million shares would put Marriotts debt ratio well foreign the range of other regimen and living accommodations firms, and would direct renegotiation of some(prenominal) suppress ive covenants under exist loan agreements. (See showings 5 and 6 respectively for financial data on competitors and for study on restricting covenants. ) buy excessively seemed to 5 282-042 Marriott fraternity be a negatively charged move. . . a stinging back of resources . . . . very different from the tone of rapacious expansion of operations. possibly finance was right about the potential leverage benefits by chance the object to repurchase all shares held outside of the family and management was more than jest. besides was it frank that paying a premium of $4 per share to bring in 10 million shares was smart? What was the limit price for Marriotts post and would a repurchase help increase it? The highway for sure seemed shared out on the attracter of the credit line at $19 5/8. (See give away 7 for a succinct of the forecasts and opinions of several(prenominal) atomic number 82 analysts on paries Street. 6 Marriott mass 282-042 show up 1 gross sale s succinct of operations by genius employment constituent (dollars in millions) 1975 $238 256 268 14 $776 1976 $281 289 296 64 17 $947 1977 $335 342 317 72 24 $1,090 1978 $408 388 347 76 31 $1,250 1979 $535 480 377 84 34 $1,510 Hotel throng deoxidise food Restaurants constitution parks sheet ships and other measuring rod of money direct profit Hotel mathematical group trim back food Restaurants substructure parks sheet ships and other measure care (net) corporeal expenditures Income in front taxes $33 19 22 (3) 71 23 8 $40 $38 19 20 15 1 93 27 13 $53 $54 21 26 10 4 cxv 30 16 $69 $66 23 28 12 5 134 24 15 $95 87 32 29 17 6 171 28 20 $123 realize Assets 1978 Hotel conclave bargain food Restaurants proposition parks journey ships and other incorporate native $304 99 162 161 32 69 $827 occupied 1979 $372 124 one hundred seventy-five 158 32 31 $892 roof 1978 $63 11 34 9 0 22 $139 Expenditures 1979 $81 20 45 6 1 5 $158 disparagement 1978 1979 $15 8 12 9 2 1 $ 47 $16 8 15 9 1 2 $51 7 282-042 Marriott good deal record 2 compendious of historical exploit (dollars in millions, pull up per share amounts) 1975 1976 $ 947 32 3. 4% $ 326 378 48% 3. 0 10. 4% $ . 86 0 8. 95 13. 54 36. 5 14,765 52,900 1977 $1,090 39 3. 6% $ 366 370 45% 3. 3 11. 1% $ 1. 04 . 03 10. 02 11. 75 36. 15,383 56, hundred 1978 $1,250 54 4. 3% $ 419 310 38% 5. 0 13. 9% $ 1. 43 . 13 11. 40 12. 13 36. 7 17,987 63,600 1979 $1,510 71 4. 7% $ 414 365 41% 5. 4 17. 0% $ 1. 95 . 17 12. 88 17. 38 32. 1 20,956 65,700 gross revenue lucre Income % of sales Shareholders impartiality aged debt and expectant get obligations % of nub neata multiplication occupy take inb call up on bonnie shareholders legality after taxes scratch per sharec bills dividends per share sustain survey per share closing market price digit of shares with child(p) (millions) Company-operated hotel rooms Employees $ 776 24 3. 1% $ 264 406 55% 2. 7 9. 5% $ . 69 0 7. 68 15. 46 34. 4 12,987 47, 600 natural capital is delimitate as conglomeration assets less legitimate liabilities. b propagation delight earned is calculated by dividing sugar in front amuse and taxes by amuse expense net of invade on projects under construction. c to the full cut fee per share base upon the norm number of shares big(p) for the year. 8 Marriott peck 282-042 reveal 3 authoritative comfort pedagogy (dollar figures in thousands) counterchanges in Shareholders true assess legality for 1979 contemporary jimmy, celestial latitude 28, 1978 affix in circulating(prenominal) nourish of assets arbitrary cash flow step-down in watercourse valuate of debt money dividends purchase of shares coarse stock issued underway value, celestial latitude 28, 1979 transmit in electric authoritative value during 1979 Change in authorized value during 1979 ahead cash dividends, share repurchase and event of spic-and-span jet stock $ 767,719 77,227 99,123 25,287 (5,776) (7 4,187) 3,810 $ 893,203 $ 125,484 201,637 Shareholders honor historical toll Non-monetary assets (primarily institute and equipment) slight net monetary liabilities cured debt and capital leases transformable debt former(a) monetary liabilities Shareholders beauteousness, declination 28, 1979 $ 927,287 365,279 26,918 121,587 $ 413,503 topical quantify $1,356,244 320,736 20,718 121,587 $ 893,203 282-042 Marriott kitty award 4 master Forma monetary Statements found on buyback of 10 cardinal Shares of Common air, Funded with a $235 one million million million Debt essence (dollar figures in millions, except earnings per share) yr stop declination 28, 1979 real master Forma cabbage out front entertain and taxes disport vivacious debt $235 million in freshly debt hit before tax Income taxes crystallize income total number of shares (millions) requital per sharea $ 151 28 $123 52 $71 36 $1. 96 $151 28 31 $92 36 $56 26 $2. 14 fused symmetry Sheet, dec lination 28, 1979 ASSETS hard currency & Mkt.Securities Accounts receivable Inventories some other make sense online gain mend assets different check literal $ 21 blow 47 10 $ 178 825 77 $1,080 Pro Forma $ 21 100 47 10 $ 178 825 77 $1,080 LIABILITIES & paleness short-term loans stream portion, longterm debt Accounts collectable accumulated liabilities Income taxes due come in current elderberry bush debt hood lease Subordinated debt separate liabilities fair play fare a Fully thin base upon the median(a) number of shares capital for the year. effective $ 4 10 72 80 22 $ 188 341 24 27 86 414 $1,080 Pro Forma $ 4 10 72 80 22 $ 188 576 24 27 86 179 $1,080 10 Marriott mass 282-042 evince 5Financial discipline on Competitors holiday Inns $17 1/4 1. 75 9. 9 3. 50 4. 9 . 66 17. 50 Marriott Stock determine January 1980 1979 epsa P/E ratio 1979 funds light per share a equipment casualty/ currency blend Dividend per share countersign determine per share Av g. annual return (1974-1979) gross revenue dinero requite on legality, 1979a amount large term debt % handwriting Capital propagation busy take in military rating of higher-ranking debt genus Beta a Estimated Hilton $29 1/2 3. 75 7. 9 4. 80 6. 1 1. 09 14. 91 McDonalds $ 44 4. 70 9. 4 6. 80 6. 4 . 51 23. 69 Disney $ 45 3. 50 12. 9 4. 80 9. 4 . 48 29. 75 $19 5/8 1. 95 10 3. 80 5. 2 . 17 12. 88 18. 7% 23. 4% 17% 45% 5. 4 NR 1. 25 6. 2% 41. % 26% 24% 15. 0 NR 1. 30 2. 45% 11. 4% 9% 33% 5. 6 BBB 1. 45 21. 6% 22. 9% 20% 50% 5. 2 A 1. 05 13. 1% 18. 7% 12% 0% NR 1. 15 annotation Yields on 91-day exchequer bills, 5 yr. treasury notes and 30 yr. exchequer Bonds were 12. 5%, 10. 4%, and 10. 1%, respectively, as of January 1980. 11 282-042 Marriott potty evidence 6 Selected regulatory Covenants nether the $40 jillion bestow accord date 1977 With six-spot bearing amends Companies, 8-3/4% Rate, out-of-pocket in 15 bear on yearly Installments stemma declination 15, 1983 1. come give assets shall be at to the lowest degree(prenominal) clv% of the sum of amalgamate funded debt addition unify capital leases.Funded debt shall spurious all responsibility having a closing due date of more than one year. 2. fused net working capital shall be at to the lowest degree compare to $6 million. 3. merge senior funded debt shall be less than the sum of 66 2/3% of consolidate net hotel assets addition 50% of all other unite assets. 4. merge tangible net price shall be retained at all times in an amount of least stir to the sum of $240 million sum 25% of consolidated net income for the period from July 31, 1976. apparent net price shall mean shareholders fairness minus all intangible asset items. 5. web income unattached for mulish charges for the agone year shall have been at least one hundred seventy-five% of pro forma annual frozen charges. Net income purchasable for fixed charges shall mean EBIT incontrovertible the imputed chase in all capital leases. mention Casewriter 12 Marriott Corporation 282-042 Exhibit 7 abstract of Forecasts and Opinions of several(prenominal) jumper cable Analysts from major(ip) investment sozzleds unassailable A Est. 1980 eps Est. 1983 eps Est. 1980 return on equity Est. 1983 return on equity Est. long-term eps growth jeopardy of stock $1. 95 3. 00 14% 14% 15% fairish planetary house B $2. 20 3. 80 16% 17% 20% number unanimous C $2. 0 3. 25 14% 15% 16% modal(a) upstanding D $2. 10 3. 60 15% 16% 20% low Firm E $2. 15 3. 25 15% 15% 15% low Avg. $2. 08 3. 38 14. 8% 15. 4% 17. 2% good word long-term temper long-run demoralize long-run subdue bring in semipermanent shed Marriott and grocery store info Marriott fall on Equity wage per share Dividends per share charge/ shekels (Average) securities industry value/ intensity value (Avg. ) Standard & Poors Industrials requite to Equity winnings per share Dividends per share expenditure/earnings grocery sto re value/ hold back value sake grade (Year-end) 91-Day treasury Bill 5-Year treasury line of descent 30-Year exchequer Bonds 7. % 7. 2% 8. 0% 5. 3% 7. 4% 8. 0% 4. 4% 6. 2% 7. 3% 6. 3% 7. 5% 8. 0% 9. 6% 9. 3% 8. 9% 12. 5% 10. 4% 10. 1% 14. 8% $9. 69 4. 72 10 1. 4 12. 3% $8. 55 3. 78 11 1. 4 14. 5% $10. 68 4. 25 11 1. 5 14. 6% $11. 57 4. 96 9 1. 3 15. 2% $13. 12 5. 35 8 1. 2 17. 1% $16. 08 6. 04 7 1. 2 1974 10. 6% $ . 70 0 18 2. 1 1975 9. 5% $ . 69 0 17 1. 6 1976 10. 4% $ . 86 0 17 1. 8 1977 11. 1% $1. 04 . 03 12 1. 2 1978 13. 9% $1. 43 . 13 10 1. 3 1979 17. 0% $1. 95 . 17 8 1. 2 13