Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, Can you take a look at the attached material and let me know if you can help me with it and show all your

Hi,

Can you take a look at the attached material and let me know if you can help me with it and show all your work. The question is in the JPG file and you will need the Excel workbook and Word doc to answer the question.

I can extend the due date if you need more time.

image text in transcribed Starwood Hotels & Resorts Worldwide Inc (NYS: HOT) $Millions Income Statement Owned, leased & consolidated joint ventures hotels revenu Vacation ownership & residential sales & services revenues Management fees, franchise fees & other income Other hotel & leisure revenues Other revenues from managed & franchised properties Total revenues 2000 3,659.0 686.0 4,345.0 2001 3,343.0 624.0 3,967.0 2002 3,232.0 647.0 780.0 4,659.0 2003 3,085.0 694.0 851.0 4,630.0 2004 3,326.0 640.0 419.0 983.0 5,368.0 2005 3,517.0 889.0 501.0 1,070.0 5,977.0 2006 2,692.0 1,005.0 697.0 1,585.0 5,979.0 2007 2,429.0 1,025.0 839.0 1,860.0 6,153.0 2008 2,259.0 749.0 857.0 2,042.0 5,907.0 2009 1,584.0 523.0 658.0 1,947.0 4,712.0 2010 1,704.0 538.0 712.0 2,117.0 5,071.0 2011 1,768.0 703.0 814.0 2,339.0 5,624.0 2012 1,698.0 1,287.0 888.0 2,448.0 6,321.0 2013 1,612.0 924.0 965.0 2,614.0 6,115.0 2014 5-yr CAGR10-yr CAGR 1,541.0 -0.55% -7.40% 674.0 5.20% 0.52% 1,057.0 9.94% 9.69% 2,711.0 6.84% 10.68% 5,983.0 4.89% 1.09% Total operating costs & expenses Depreciation expenses Amortization expenses Operating income 2,836.0 391.0 90.0 1,028.0 2,826.0 433.0 93.0 615.0 3,576.0 476.0 20.0 587.0 3,774.0 410.0 19.0 427.0 4,284.0 413.0 18.0 653.0 4,748.0 387.0 20.0 822.0 4,834.0 280.0 26.0 839.0 4,989.0 280.0 26.0 858.0 4,965.0 291.0 32.0 619.0 4,377.0 274.0 35.0 26.0 4,186.0 252.0 33.0 600.0 4,729.0 235.0 30.0 630.0 5,158.0 226.0 25.0 912.0 4,923.0 239.0 28.0 925.0 4,817.0 254.0 29.0 883.0 403.0 1.0 16.0 610.0 207.0 403.0 378.0 20.0 57.0 200.0 55.0 145.0 310.0 28.0 53.0 252.0 -103.0 355.0 301.0 19.0 156.0 -11.0 -320.0 309.0 293.0 39.0 -13.0 412.0 17.0 395.0 258.0 19.0 -59.0 642.0 220.0 422.0 244.0 29.0 -58.0 682.0 -361.0 1,043.0 168.0 21.0 -22.0 733.0 191.0 542.0 210.0 3.0 82.0 330.0 1.0 329.0 230.0 3.0 95.0 -296.0 -369.0 73.0 238.0 2.0 29.0 335.0 -142.0 477.0 219.0 3.0 -11.0 425.0 -64.0 489.0 172.0 2.0 124.0 618.0 56.0 562.0 103.0 3.0 -3.0 828.0 193.0 635.0 97.0 3.0 7.0 782.0 149.0 633.0 2000 189.0 502.0 238.0 119.0 1,048.0 2001 157.0 432.0 219.0 89.0 897.0 2002 108.0 108.0 412.0 214.0 108.0 950.0 2003 427.0 81.0 418.0 215.0 104.0 1,245.0 2004 326.0 347.0 482.0 371.0 157.0 1,683.0 2005 897.0 295.0 642.0 280.0 169.0 2,283.0 2006 183.0 329.0 593.0 566.0 139.0 1,810.0 2007 162.0 196.0 616.0 714.0 136.0 1,824.0 2008 389.0 96.0 552.0 986.0 143.0 2,166.0 2009 87.0 47.0 447.0 783.0 127.0 1,491.0 2010 753.0 53.0 513.0 802.0 59.0 126.0 2,306.0 2011 454.0 232.0 569.0 812.0 64.0 278.0 125.0 2,534.0 2012 305.0 158.0 586.0 361.0 65.0 320.0 124.0 1,919.0 2013 616.0 134.0 643.0 217.0 54.0 211.0 121.0 1,996.0 2014 5-yr CAGR10-yr CAGR 935.0 60.79% 11.11% 84.0 12.31% -13.22% 661.0 8.14% 3.21% 236.0 -21.33% -4.42% 47.0 199.0 159.0 4.60% 0.13% 2,321.0 9.25% 3.27% 1,351.0 1,337.0 924.0 6,193.0 6,350.0 3,479.0 1,942.0 2,095.0 1,361.0 217.0 189.0 116.0 9,703.0 9,971.0 5,880.0 2,580.0 2,974.0 1,924.0 7,123.0 6,997.0 3,956.0 415.0 453.0 403.0 - 3,147.0 2,488.0 2,544.0 2,263.0 623.0 621.0 402.0 11,894.0 12,298.0 12,454.0 760.0 3,603.0 1,566.0 153.0 6,082.0 2,251.0 3,831.0 436.0 2.0 2,302.0 518.0 381.0 9,280.0 714.0 3,589.0 1,690.0 221.0 6,214.0 2,364.0 3,850.0 423.0 2,302.0 729.0 494.0 9,622.0 635.0 3,444.0 1,792.0 199.0 6,070.0 2,471.0 3,599.0 372.0 10.0 2,235.0 639.0 682.0 9,703.0 597.0 3,222.0 1,824.0 180.0 5,823.0 2,473.0 3,350.0 344.0 71.0 2,063.0 982.0 222.0 103.0 101.0 494.0 8,761.0 600.0 3,300.0 1,901.0 170.0 5,971.0 2,648.0 3,323.0 312.0 2,067.0 979.0 132.0 88.0 161.0 381.0 408.0 9,776.0 614.0 3,066.0 1,859.0 244.0 5,783.0 2,513.0 3,270.0 259.0 2,057.0 639.0 93.0 104.0 158.0 355.0 446.0 9,560.0 554.0 2,985.0 1,876.0 169.0 5,584.0 2,422.0 3,162.0 260.0 36.0 2,025.0 636.0 92.0 158.0 135.0 385.0 438.0 8,861.0 506.0 2,895.0 1,865.0 152.0 5,418.0 2,384.0 3,034.0 251.0 2,032.0 591.0 217.0 183.0 143.0 543.0 315.0 8,762.0 292.0 2,661.0 1,849.0 80.0 4,882.0 2,248.0 2,634.0 214.0 1,956.0 596.0 295.0 223.0 193.0 711.0 227.0 8,659.0 -13.33% -3.75% 0.27% -14.97% -3.46% -1.89% -4.70% -9.06% -14.11% -8.33% -1.24% -8.24% -6.89% -2.76% -9.31% -7.22% -1.06% -9.50% 5.85% 16.71% 13.83% 7.55% -2.59% -0.23% -3.45% Interest expense Interest income Other income (expense), net Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Balance Sheet Cash & cash equivalents Restricted cash Accounts receivable, net Inventories Securitized vacation ownership notes receivable, net Deferred income taxes Prepaid expenses & other current assets Total current assets Land & improvements Buildings & improvements Furniture, fixtures & equipment Construction work in process Plant, property & equipment, gross Less accumulated depreciation & amortization Plant, property & equipment, net Investments Assets held for sale, net Goodwill & intangible assets, net Deferred income taxes Vacation ownership interest notes receivable, net Prepaid expenses Deposits & other assets Other assets Securitized vacation ownership notes receivable, net Total assets 1,395.0 1,354.0 1,382.0 6,265.0 6,434.0 6,585.0 1,603.0 1,727.0 1,918.0 113.0 160.0 162.0 9,376.0 9,675.0 10,047.0 1,487.0 1,840.0 2,297.0 7,889.0 7,835.0 7,750.0 412.0 400.0 434.0 2,881.0 2,825.0 2,570.0 430.0 504.0 555.0 12,660.0 12,461.0 12,259.0 1.93% 1.18% 102.39% 3.06% -15.86% 0.00% -40.64% #VALUE! -10.47% -22.62% NMF 6.62% 54.03% 4.83% 1.36% Accounts payable Accrued expenses Current maturities of long-term debt Total current liabilities 186.0 1,034.0 585.0 1,805.0 225.0 1,030.0 332.0 1,587.0 223.0 1,106.0 870.0 2,199.0 171.0 1,240.0 233.0 1,644.0 200.0 1,309.0 619.0 2,128.0 156.0 1,504.0 1,219.0 2,879.0 179.0 1,477.0 805.0 2,461.0 201.0 1,895.0 5.0 2,101.0 171.0 2,011.0 506.0 2,688.0 139.0 1,883.0 5.0 2,027.0 138.0 1,887.0 136.0 2,161.0 144.0 1,715.0 133.0 1,992.0 121.0 1,756.0 152.0 2,029.0 105.0 1,720.0 99.0 1,924.0 101.0 1,979.0 370.0 2,450.0 -6.19% 1.00% 136.51% 3.86% -6.60% 4.22% -5.02% 1.42% Long-term debt Deferred income taxes 5,122.0 1,444.0 5,310.0 1,314.0 4,539.0 986.0 4,452.0 898.0 3,850.0 880.0 2,951.0 562.0 1,852.0 31.0 3,616.0 28.0 3,525.0 26.0 2,955.0 31.0 3,215.0 28.0 2,596.0 46.0 1,656.0 78.0 1,523.0 48.0 2,574.0 38.0 -2.72% 4.16% -3.95% -26.97% Starwood Preferred Guest point liability Benefit plan liabilities Other liabilities Total equity Total liabilities & shareholder equity Other Data Depreciation & amortization Capital Expenditures Tax Rate Share Repurchases ($) Cash taxes Year end shares outstanding Net earnings (loss) per share-basic Net earnings (loss) per share-diluted Distributions & dividends declared per share Total number of employees Number of common shareholders Year-end stock price Market Value ($Million) Enterprise Value ($Million) Total Rooms Average Daily Rate (ADR) Occupancy REVPAR ROIC NOPLAT EBITA (includes Dep and Amort for consistency) Operating taxes NOPLAT Invested Capital Operating Working Capital Net PP&E Capitalized operating leases Intangible assets Other operating assets (net of liabilities) Invested Capital (w/o goodwill) Goodwill Invested Capital (with goodwill) ROIC (w/o goodwill) ROIC (with goodwill) RATIOS LIQUIDITY Current Quick Operating Cycle Cash Cycle Cash/Revenue Net Working Capital LEVERAGE Debt/Total Assets Debt/Equity (book) 438.0 494.0 538.0 3,851.0 3,756.0 3,997.0 12,660.0 12,461.0 12,259.0 574.0 652.0 851.0 4,326.0 4,788.0 5,211.0 11,894.0 12,298.0 12,454.0 1,928.0 3,008.0 9,280.0 1,801.0 2,076.0 9,622.0 1,843.0 1,621.0 9,703.0 634.0 65.0 1,204.0 1,845.0 8,761.0 702.0 61.0 1,123.0 2,486.0 9,776.0 724.0 74.0 1,173.0 2,955.0 9,560.0 733.0 78.0 1,145.0 3,142.0 8,861.0 780.0 46.0 1,078.0 3,363.0 8,762.0 721.0 53.0 1,295.0 1,528.0 8,659.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 481.0 526.0 496.0 429.0 431.0 407.0 306.0 306.0 323.0 309.0 285.0 265.0 251.0 267.0 283.0 544.0 477.0 300.0 307.0 333.0 464.0 371.0 384.0 476.0 196.0 227.0 385.0 362.0 364.0 327.0 33.9% 27.5% -40.9% 2909.1% 4.1% 34.3% -52.9% 26.1% 0.3% 124.7% -42.4% -15.1% 9.1% 23.3% 19.1% 69.0 96.0 0.0 28.0 310.0 228.0 1,287.0 1,787.0 593.0 0.0 0.0 0.0 320.0 316.0 1,636.0 179.0 141.0 94.0 41.0 21.0 447.0 249.0 128.0 58.0 12.0 -171.0 56.0 103.0 130.0 141.0 194,485.4 197,718.9 199,579.5 201,812.1 208,730.8 217,218.8 213,484.4 190,998.6 182,827.5 186,785.1 192,970.4 195,913.4 193,121.1 191,897.8 172,694.3 2.04 0.72 1.76 1.53 1.91 1.95 4.91 2.67 1.81 0.41 2.61 2.58 2.92 3.33 3.43 1.97 0.7 1.73 1.5 1.84 1.88 4.69 2.57 1.77 0.41 2.51 2.51 2.86 3.28 3.40 0.84 0.90 0.90 0.20 0.30 0.50 1.25 1.35 4.00 129,000 115,000 105,000 110,000 120,000 145,000 145,000 155,000 145,000 145,000 145,000 154,000 171,000 181,400 180,400 21,000 20,000 19,000 20,000 21,200 18,000 18,000 18,000 17,000 15,000 14,000 14,000 12,000 11,600 11,000 35.25 29.85 23.74 35.97 58.40 63.86 62.50 44.03 17.90 36.57 60.78 47.97 57.36 79.45 81.07 6,855.6 5,901.9 4,738.0 7,259.2 12,189.9 13,871.6 13,342.8 8,409.7 3,272.6 6,830.7 11,728.7 9,398.0 11,077.4 15,246.3 14,000.3 12,562.6 11,543.9 10,147.0 11,944.2 16,658.9 18,041.6 15,999.8 12,030.7 7,303.6 9,790.7 15,079.7 12,127.0 12,885.4 16,868.3 16,944.3 45,000 53,000 53,000 50,000 49,000 44,000 25,000 22,000 21,000 18,000 308,700 252,600 265,900 276,100 284,400 150.60 156.73 150.42 152.12 161.74 174.70 191.56 222.03 237.45 199.22 160.00 168.37 169.55 173.35 175.64 70.8% 65.1% 63.5% 64.6% 68.5% 70.5% 71.2% 72.2% 71.1% 64.7% 66.6% 68.0% 68.7% 68.7% 70.1% 106.57 102.03 95.52 98.27 110.79 123.16 136.39 160.31 168.83 128.90 106.56 114.49 116.48 119.09 123.12 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1,028 275 753 615 165 450 587 157 430 427 114 313 653 175 478 822 220 602 839 225 614 858 230 628 619 166 453 26 7 19 600 161 439 630 169 461 912 244 668 925 248 677 -358.0 7,835.0 561.0 0 10.0 8,048.0 -379.0 7,750.0 558.8 0 17.0 7,946.8 -166.0 7,123.0 507.4 0 49.0 7,513.4 174.0 6,997.0 619.5 0 -31.0 7,759.5 623.0 3,956.0 671.5 0 -449.0 4,801.5 154.0 3,831.0 548.4 0 -1,547.0 2,986.4 -272.0 3,850.0 663.3 0 -1,307.0 2,934.3 -16.0 3,599.0 594.8 0 -1,161.0 3,016.8 -531.0 3,350.0 642.5 0 -918.0 2,543.5 281.0 3,323.0 781.1 0 -1,063.0 3,322.1 397.0 3,270.0 727.8 0 -1,187.0 3,207.8 -278.0 3,162.0 877.8 0 -1,108.0 2,653.8 -40.0 3,034.0 881.1 0 -772.0 3,103.1 2,825.0 10,873.0 2,570.0 10,516.8 2,488.0 10,001.4 2,544.0 10,303.5 2,263.0 7,064.5 2,302.0 5,288.4 2,302.0 5,236.3 2,235.0 5,251.8 2,063.0 4,606.5 2,067.0 5,389.1 2,057.0 5,264.8 2,025.0 4,678.8 2,032.0 5,135.1 5.6% 4.1% 5.4% 4.1% 4.2% 3.1% 6.2% 4.6% 12.5% 8.5% 20.6% 11.6% 21.4% 12.0% 15.0% 8.6% 0.7% 0.4% 13.2% 8.2% 14.4% 8.8% 25.2% 14.3% 21.8% 13.2% 23.1% 13.6% Median 27.4% 26.8% 175.51 69.6% 122.38 174.03 70.3% 121.11 Mean Median 15.6% 9.7% 17.0% 10.3% Mean Median 0.8 0.6 0.8 0.6 0.10 -373.5 0.09 -445.0 0.3 1.3 0.3 1.3 1,956.0 4,758.7 9.5% 6.9% Mean 42.0 2,634.0 720.7 0 -594.0 2,802.7 2,881.0 10,835.0 7.10% -10.79% -3.45% 883 236 647 -172.0 7,889.0 245.0 0 -8.0 7,954.0 2.61% -4.00% 1.47% -3.70% -0.23% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0.6 0.4 NMF NMF 0.04 -757.0 0.6 0.4 NMF NMF 0.04 -690.0 0.4 0.3 NMF NMF 0.05 -1,249.0 0.8 0.6 NMF NMF 0.11 -399.0 0.8 0.6 NMF NMF 0.13 -445.0 0.8 0.7 NMF NMF 0.20 -596.0 0.7 0.5 NMF NMF 0.09 -651.0 0.9 0.5 NMF NMF 0.06 -277.0 0.8 0.4 NMF NMF 0.08 -522.0 0.7 0.3 NMF NMF 0.03 -536.0 1.1 0.7 NMF NMF 0.16 145.0 1.3 0.9 NMF NMF 0.12 542.0 0.9 0.8 NMF NMF 0.07 -110.0 1.0 0.9 NMF NMF 0.12 72.0 0.9 0.9 NMF NMF 0.17 -129.0 0.5 1.5 0.5 1.5 0.4 1.4 0.4 1.1 0.4 0.9 0.3 0.8 0.3 0.9 0.4 1.7 0.4 2.5 0.3 1.6 0.3 1.3 0.3 0.9 0.2 0.6 0.2 0.5 0.3 1.9 Debt/Equity (market) EBIT/Interest EBITDA/Interest PROFITABILITY Gross Margins Operating Margin Net Margins Return on Assets (ROA) Return on Equity (ROE) Enterprise Value (EV) ($mill) EV / Revenue EV / EBIT EV / EBITDA Capitalized Operating Leases Rent Expense Asset Life Cost of Debt (HOT has BBB rating) Present Value Other Relationships Depre/NPPE Inventory/Revenue CA Securitized NR/Revenue LTA Securitized NR/Revenue Prepaid Expenses/Revenues Gross PPE/Revenue Other LTA/Revenues A/P / Revenue Accrued Expenses/Revenues Debt/Total Assets Starwood Preferred Guest point liability/Revenues Other LTL/Revenues 1.6 3.0 1.9 3.5 1.4 2.8 2.2 3.7 3.2 4.8 3.4 4.7 5.1 6.9 2.9 4.5 0.1 1.5 2.5 3.7 2.9 4.1 5.3 6.8 9.0 11.6 9.1 12.0 3.6 5.2 2.9 4.1 42.2 NMF NMF 0.3 NMF 1.2 39.7 NMF NMF 0.3 NMF 1.1 32.3 NMF NMF 0.4 NMF 1.3 33.0 NMF NMF 0.4 NMF 1.3 32.8 NMF NMF 0.4 NMF 1.5 39.2 NMF NMF 0.5 NMF 1.0 36.2 NMF NMF 0.6 NMF 1.6 36.5 NMF NMF 0.6 NMF 1.6 34.1 NMF NMF 0.6 NMF 1.5 34.6 NMF NMF 0.5 NMF 1.1 36.9 NMF NMF 0.5 35.0 1.1 36.9 NMF NMF 0.6 10.4 1.4 33.8 NMF NMF 0.7 NMF 1.5 38.4 NMF NMF 0.7 84.9 1.4 40.3 NMF NMF 0.7 NMF 1.4 36.5 36.5 0.5 43.4 1.3 0.5 35.0 1.4 NMF 23.7% 9.3% 6.5% 10.5% NMF 15.5% 3.7% 4.5% 3.9% NMF 12.6% 7.6% 5.6% 8.9% NMF 9.2% 6.7% 6.3% 7.1% NMF 12.2% 7.4% 5.2% 8.2% NMF 13.8% 7.1% 4.8% 8.1% NMF 14.0% 17.4% 12.9% 34.7% NMF 13.9% 8.8% 6.9% 26.1% NMF 10.5% 5.6% 6.4% 20.3% NMF 0.6% 1.5% 4.5% 4.0% NMF 11.8% 9.4% 7.6% 19.2% NMF 11.2% 8.7% 7.3% 16.5% NMF 14.4% 8.9% 9.7% 17.9% NMF 15.1% 10.4% 8.4% 18.9% NMF 14.8% 10.6% 8.5% 41.4% 12.9% 8.2% 7.0% 16.4% 13.8% 8.7% 6.5% 16.5% 2.9 12.2 8.3 2.9 18.8 10.1 2.2 17.3 9.4 2.6 28.0 14.0 3.1 25.5 15.4 3.0 21.9 14.7 2.7 19.1 14.0 2.0 14.0 10.3 1.2 11.8 7.8 2.1 376.6 29.2 3.0 25.1 17.0 2.2 19.2 13.5 2.0 14.1 11.1 2.8 18.2 14.2 2.8 19.2 14.5 2.5 42.7 13.6 2.7 19.1 14.0 2000 38.0 14.0 0.0837 245.0 2001 82.0 15.0 0.0795 561.0 2002 73.0 19.0 0.0780 558.8 2003 61.0 19.0 0.0676 507.4 2004 74.0 18.0 0.0639 619.5 2005 78.0 18.0 0.0606 671.5 2006 66.0 18.0 0.0648 548.4 2007 82.0 17.0 0.0648 663.3 2008 90.0 13.0 0.0744 594.8 2009 87.0 16.0 0.0729 642.5 2010 96.0 16.0 0.0604 781.1 2011 84.0 17.0 0.0566 727.8 2012 95.0 17.0 0.0494 877.8 2013 100.0 16.0 0.0510 881.1 2014 80.0 16.0 0.0485 720.7 Mean EFFICIENCY/UTILIZATION Days in A/R Days in Inventory Days in A/P Sales/Total Assets Sales/Net Working Capital Sales/Fixed Assets 2.6 3.7 Median 2010 2011 2012 2013 2014 0.0858 0.0810 0.0794 0.0880 0.1074 0.0800 0.1582 0.1444 0.0571 0.0355 0.0394 0.0864 0.01163 0.01138 0.01028 0.00883 0.00786 0.0100 0.10649 0.09584 0.08385 0.08700 0.08725 0.0921 0.0248 0.0222 0.0196 0.0198 0.0266 0.0242 1.18 1.03 0.88 0.89 0.82 1.3848 0.1069 0.0912 0.0823 0.1122 0.1511 0.1061 0.0272 0.0256 0.0191 0.0172 0.0169 0.0316 0.3721 0.3049 0.2778 0.2813 0.3308 0.2907 0.3428 0.2855 0.2040 0.1851 0.3400 0.3473 0.1384342 0.128734 0.1159627 0.1275552 0.1205081 0.1276 0.2215 0.2086 0.1811 0.1763 0.2164 0.1943 0.0799 0.0571 0.0103 0.0872 0.0232 1.0283 0.1122 0.0295 0.2778 0.3428 0.1281 0.1811 2000 0.0610 0.0548 2001 0.0671 0.0552 2002 0.0640 0.0459 2003 0.0602 0.0464 2004 0.0616 0.0691 2005 0.1029 0.0468 2006 0.0799 0.0947 2007 0.0795 0.1160 2008 0.0897 0.1669 0.0274 2.16 0.0990 0.0428 0.2380 0.4508 0.0224 2.44 0.1270 0.0567 0.2596 0.4528 0.0232 2.16 0.1191 0.0479 0.2374 0.4412 0.0225 2.10 0.1346 0.0369 0.2678 0.3939 0.0292 1.86 0.1157 0.0373 0.2439 0.3634 0.0283 0.98 0.0673 0.0261 0.2516 0.3348 0.0232 1.02 0.0637 0.0299 0.2470 0.2863 0.0221 1.01 0.0803 0.0327 0.3080 0.3763 0.0242 1.03 0.1155 0.0289 0.3404 0.4154 0.1008 0.1245 0.1155 0.1240 0.1215 0.1424 0.3225 0.2927 2009 0.0922 0.1662 0.0270 1.24 0.1263 0.0295 0.3996 0.3379 0.1345501 0.3120 0.2555 14-yr CAGR -5.99% 2.31% 3.86% -1.08% -9.67% 8.16% -5.73% 1.79% 3.28% 14-yr CAGR 12.10% 1.98% -0.06% 2.09% 5.84% -10.57% -5.93% 1.02% -2.44% -4.55% 3.00% -7.54% -4.57% Common Sized Income Statement 2000 2001 2002 0.84 0.84 0.69 0.00 0.00 0.00 0.00 0.00 0.00 0.16 0.16 0.14 0.00 0.00 0.17 1.00 1.00 1.00 2003 0.67 0.00 0.00 0.15 0.18 1.00 2004 0.62 0.12 0.08 0.00 0.18 1.00 2005 0.59 0.15 0.08 0.00 0.18 1.00 2006 0.45 0.17 0.12 0.00 0.27 1.00 2007 0.39 0.17 0.14 0.00 0.30 1.00 2008 0.38 0.13 0.15 0.00 0.35 1.00 2009 0.34 0.11 0.14 0.00 0.41 1.00 2010 0.34 0.11 0.14 0.00 0.42 1.00 2011 0.31 0.13 0.14 0.00 0.42 1.00 2012 0.27 0.20 0.14 0.00 0.39 1.00 2013 0.26 0.15 0.16 0.00 0.43 1.00 2014 0.26 0.11 0.18 0.00 0.45 1.00 Mean 0.48 0.10 0.10 0.04 0.28 1.00 Median 0.39 0.12 0.14 0.00 0.30 1.00 CV 0.4285 0.6729 0.6746 1.7195 0.5489 0.0000 0.65 0.09 0.02 0.24 0.71 0.11 0.02 0.16 0.77 0.10 0.00 0.13 0.82 0.09 0.00 0.09 0.80 0.08 0.00 0.12 0.79 0.06 0.00 0.14 0.81 0.05 0.00 0.14 0.81 0.05 0.00 0.14 0.84 0.05 0.01 0.10 0.93 0.06 0.01 0.01 0.83 0.05 0.01 0.12 0.84 0.04 0.01 0.11 0.82 0.04 0.00 0.14 0.81 0.04 0.00 0.15 0.81 0.04 0.00 0.15 0.80 0.06 0.01 0.13 0.81 0.05 0.00 0.14 0.0759 0.3905 0.8805 0.3669 0.09 0.00 0.00 0.14 0.05 0.09 0.10 0.01 0.01 0.05 0.01 0.04 0.07 0.01 0.01 0.05 -0.02 0.08 0.07 0.00 0.03 0.00 -0.07 0.07 0.05 0.01 0.00 0.08 0.00 0.07 0.04 0.00 -0.01 0.11 0.04 0.07 0.04 0.00 -0.01 0.11 -0.06 0.17 0.03 0.00 0.00 0.12 0.03 0.09 0.04 0.00 0.01 0.06 0.00 0.06 0.05 0.00 0.02 -0.06 -0.08 0.02 0.05 0.00 0.01 0.07 -0.03 0.09 0.04 0.00 0.00 0.08 -0.01 0.09 0.03 0.00 0.02 0.10 0.01 0.09 0.02 0.00 0.00 0.14 0.03 0.10 0.02 0.00 0.00 0.13 0.02 0.11 0.05 0.00 0.01 0.08 0.00 0.08 0.04 0.00 0.00 0.08 0.00 0.09 0.5030 0.9838 1.9238 0.7132 -8.3620 0.4326 Common Sized Balance Sheet 2000 2001 2002 0.01 0.01 0.01 0.00 0.00 0.01 0.04 0.03 0.03 0.02 0.02 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.01 0.08 0.07 0.08 2003 0.04 0.01 0.04 0.02 0.00 0.00 0.01 0.10 2004 0.03 0.03 0.04 0.03 0.00 0.00 0.01 0.14 2005 0.07 0.02 0.05 0.02 0.00 0.00 0.01 0.18 2006 0.02 0.04 0.06 0.06 0.00 0.00 0.01 0.20 2007 0.02 0.02 0.06 0.07 0.00 0.00 0.01 0.19 2008 0.04 0.01 0.06 0.10 0.00 0.00 0.01 0.22 2009 0.01 0.01 0.05 0.09 0.00 0.00 0.01 0.17 2010 0.08 0.01 0.05 0.08 0.01 0.00 0.01 0.24 2011 0.05 0.02 0.06 0.08 0.01 0.03 0.01 0.27 2012 0.03 0.02 0.07 0.04 0.01 0.04 0.01 0.22 2013 0.07 0.02 0.07 0.02 0.01 0.02 0.01 0.23 2014 0.11 0.01 0.08 0.03 0.01 0.02 0.02 0.27 Mean 0.04 0.01 0.05 0.05 0.00 0.01 0.01 0.18 Median 0.03 0.01 0.05 0.03 0.00 0.00 0.01 0.19 CV 0.7516 0.7530 0.2677 0.6570 1.4752 1.7560 0.2330 0.3800 -2.68% 0.11 0.49 0.13 0.01 0.74 0.12 0.62 0.03 0.00 0.23 0.00 0.00 0.00 0.00 0.03 0.00 1.00 0.11 0.52 0.14 0.01 0.78 0.15 0.63 0.03 0.00 0.23 0.00 0.00 0.00 0.00 0.04 0.00 1.00 0.11 0.54 0.16 0.01 0.82 0.19 0.63 0.04 0.00 0.21 0.00 0.00 0.00 0.00 0.05 0.00 1.00 0.11 0.52 0.16 0.02 0.82 0.22 0.60 0.03 0.00 0.21 0.00 0.00 0.00 0.00 0.05 0.00 1.00 0.11 0.52 0.17 0.02 0.81 0.24 0.57 0.04 0.00 0.21 0.00 0.00 0.00 0.00 0.05 0.00 1.00 0.07 0.28 0.11 0.01 0.47 0.15 0.32 0.03 0.25 0.18 0.00 0.00 0.00 0.00 0.03 0.00 1.00 0.08 0.39 0.17 0.02 0.66 0.24 0.41 0.05 0.00 0.25 0.06 0.00 0.00 0.00 0.04 0.00 1.00 0.07 0.37 0.18 0.02 0.65 0.25 0.40 0.04 0.00 0.24 0.08 0.00 0.00 0.00 0.05 0.00 1.00 0.07 0.35 0.18 0.02 0.63 0.25 0.37 0.04 0.00 0.23 0.07 0.00 0.00 0.00 0.07 0.00 1.00 0.07 0.37 0.21 0.02 0.66 0.28 0.38 0.04 0.01 0.24 0.11 0.03 0.01 0.01 0.06 0.00 1.00 0.06 0.34 0.19 0.02 0.61 0.27 0.34 0.03 0.00 0.21 0.10 0.01 0.01 0.02 0.04 0.04 1.00 0.06 0.32 0.19 0.03 0.60 0.26 0.34 0.03 0.00 0.22 0.07 0.01 0.01 0.02 0.04 0.05 1.00 0.06 0.34 0.21 0.02 0.63 0.27 0.36 0.03 0.00 0.23 0.07 0.01 0.02 0.02 0.04 0.05 1.00 0.06 0.33 0.21 0.02 0.62 0.27 0.35 0.03 0.00 0.23 0.07 0.02 0.02 0.02 0.06 0.04 1.00 0.03 0.31 0.21 0.01 0.56 0.26 0.30 0.02 0.00 0.23 0.07 0.03 0.03 0.02 0.08 0.03 1.00 0.08 0.40 0.18 0.02 0.67 0.23 0.44 0.03 0.02 0.22 0.05 0.01 0.01 0.01 0.05 0.01 1.00 0.07 0.37 0.18 0.02 0.65 0.25 0.38 0.03 0.00 0.23 0.07 0.00 0.00 0.00 0.05 0.00 1.00 0.3126 0.2278 0.1852 0.3054 0.1518 0.2287 0.2884 0.1779 3.6660 0.0739 0.8968 1.4741 1.4079 1.3063 0.2834 1.5101 0.0000 -4.27% 4.75% -3.22% 2.21% 0.01 0.08 0.05 0.14 0.02 0.08 0.03 0.13 0.02 0.09 0.07 0.18 0.01 0.10 0.02 0.14 0.02 0.11 0.05 0.17 0.01 0.12 0.10 0.23 0.02 0.16 0.09 0.27 0.02 0.20 0.00 0.22 0.02 0.21 0.05 0.28 0.02 0.21 0.00 0.23 0.01 0.19 0.01 0.22 0.02 0.18 0.01 0.21 0.01 0.20 0.02 0.23 0.01 0.20 0.01 0.22 0.01 0.23 0.04 0.28 0.02 0.16 0.04 0.21 0.02 0.18 0.03 0.22 0.1758 0.3396 0.8316 0.2324 -4.80% -22.88% 0.40 0.11 0.43 0.11 0.37 0.08 0.37 0.08 0.31 0.07 0.24 0.05 0.20 0.00 0.38 0.00 0.36 0.00 0.34 0.00 0.33 0.00 0.27 0.00 0.19 0.01 0.17 0.01 0.30 0.00 0.31 0.04 0.33 0.01 0.2600 1.1905 -2.73% 3.66% 8.05% -6.39% -2.68% 0.00 0.00 0.03 0.30 1.00 0.00 0.00 0.04 0.30 1.00 0.00 0.00 0.04 0.33 1.00 0.00 0.00 0.05 0.36 1.00 0.00 0.00 0.05 0.39 1.00 0.00 0.00 0.07 0.42 1.00 0.00 0.00 0.21 0.32 1.00 0.00 0.00 0.19 0.22 1.00 0.00 0.00 0.19 0.17 1.00 0.07 0.01 0.14 0.21 1.00 0.07 0.01 0.11 0.25 1.00 0.08 0.01 0.12 0.31 1.00 0.08 0.01 0.13 0.35 1.00 0.09 0.01 0.12 0.38 1.00 0.08 0.01 0.15 0.18 1.00 0.03 0.00 0.11 0.30 1.00 0.00 0.00 0.12 0.31 1.00 1.2744 1.2980 0.5366 0.2637 0.0000 Marriott International, Inc. (NMS: MAR) $Millions Income Statement Base management fees Franchise fees Incentive management fees Owned, leased, corporate housing & other Cost reimbursements Other sales Timeshare sales & services Synthetic fuel Distribution services Other sales Total sales before managed properties Other revenues from managed properties Total revenues Timeshare - direct expense Other operating expenses & costs Total operating costs & expenses Operating income (loss) 2000 2001 829.0 - 1,637.0 - 2,087.0 - 4,553.0 - 5,599.0 10,017.0 10,152.0 2002 379.0 232.0 162.0 383.0 5,739.0 1,353.0 193.0 8,441.0 2003 2004 388.0 435.0 245.0 296.0 109.0 142.0 633.0 730.0 6,192.0 6,928.0 1,145.0 1,247.0 302.0 321.0 9,014.0 10,099.0 2005 2006 2007 2008 2009 497.0 553.0 620.0 635.0 530.0 329.0 390.0 439.0 451.0 400.0 201.0 281.0 369.0 311.0 154.0 944.0 1,119.0 1,240.0 1,225.0 1,019.0 7,671.0 8,075.0 8,575.0 8,834.0 7,682.0 1,487.0 1,577.0 1,747.0 1,423.0 1,123.0 421.0 165.0 11,550.0 12,160.0 12,990.0 12,879.0 10,908.0 2010 2011 562.0 602.0 441.0 506.0 182.0 195.0 1,046.0 1,083.0 8,239.0 8,843.0 1,221.0 1,088.0 11,691.0 12,317.0 2012 2013 2014 5-yr CAGR10-yr CAGR 14-yr CAGR 581.0 621.0 672.0 4.86% 4.45% 607.0 666.0 745.0 13.25% 9.67% 232.0 256.0 302.0 14.42% 7.84% 989.0 950.0 1,022.0 0.06% 3.42% 9,405.0 10,291.0 11,055.0 11,814.0 12,784.0 13,796.0 4.81% 3.17% 2.31% 9,095.0 9,095.0 922.0 9,562.0 9,562.0 590.0 7,868.0 7,868.0 573.0 8,637.0 8,637.0 377.0 1,039.0 8,583.0 9,622.0 477.0 1,228.0 9,767.0 10,995.0 555.0 1,220.0 9,929.0 11,149.0 1,011.0 1,397.0 10,405.0 11,802.0 1,188.0 1,334.0 10,760.0 12,094.0 785.0 1,654.0 9,406.0 11,060.0 -152.0 1,022.0 9,974.0 10,996.0 695.0 1,253.0 10,538.0 11,791.0 526.0 10,874.0 10,874.0 940.0 100.0 55.0 -120.0 757.0 278.0 479.0 109.0 94.0 -205.0 370.0 134.0 236.0 86.0 122.0 -138.0 471.0 194.0 277.0 110.0 129.0 92.0 488.0 -14.0 502.0 99.0 146.0 130.0 654.0 58.0 596.0 106.0 79.0 189.0 717.0 48.0 669.0 124.0 45.0 65.0 997.0 389.0 608.0 184.0 38.0 95.0 1,137.0 441.0 696.0 163.0 39.0 33.0 694.0 332.0 362.0 118.0 25.0 -173.0 -418.0 -65.0 -353.0 180.0 19.0 17.0 551.0 93.0 458.0 164.0 14.0 -20.0 356.0 158.0 198.0 137.0 17.0 29.0 849.0 278.0 571.0 120.0 23.0 6.0 897.0 271.0 626.0 Balance Sheet Cash & equivalents Accounts & notes receivable Inventory Current deferred taxes, net Other current assets Total current assets 2000 334.0 728.0 97.0 0.0 256.0 1,415.0 2001 817.0 611.0 96.0 0.0 606.0 2,130.0 2002 198.0 524.0 0.0 0.0 1,022.0 1,744.0 2003 229.0 699.0 0.0 0.0 307.0 1,235.0 2004 770.0 797.0 0.0 162.0 217.0 1,946.0 2005 203.0 837.0 0.0 211.0 759.0 2,010.0 2006 193.0 1,117.0 1,208.0 200.0 596.0 3,314.0 2007 332.0 1,148.0 1,557.0 185.0 350.0 3,572.0 2008 134.0 898.0 1,981.0 186.0 169.0 3,368.0 2009 115.0 838.0 1,444.0 255.0 199.0 2,851.0 2010 505.0 938.0 1,489.0 246.0 204.0 3,382.0 2011 102.0 875.0 11.0 282.0 54.0 1,324.0 2012 88.0 1,028.0 10.0 280.0 69.0 1,475.0 2013 126.0 1,081.0 0.0 252.0 444.0 1,903.0 2014 5-yr CAGR10-yr CAGR 14-yr CAGR 104.0 -1.99% -18.14% -8.00% 1,100.0 5.59% 3.27% 2.99% 0.0 -100.00% #DIV/0! -100.00% 311.0 4.05% 6.74% #DIV/0! 406.0 15.33% 6.46% 3.35% 1,921.0 -7.59% -0.13% 2.21% Land Buildings & leasehold improvements Furniture & equipment Timeshare properties Construction in progress Property & equipment, gross Accumulated depreciation Property & equipment, net Goodwill Intangible assets Equity & cost method investments Notes receivable Deferred taxes, net Other assets Total assets 597.0 1,240.0 647.0 914.0 349.0 3,747.0 506.0 3,241.0 0.0 1,833.0 747.0 661.0 0.0 340.0 8,237.0 505.0 860.0 620.0 1,167.0 337.0 3,489.0 559.0 2,930.0 0.0 1,764.0 823.0 1,038.0 0.0 422.0 9,107.0 386.0 547.0 676.0 1,270.0 180.0 3,059.0 470.0 2,589.0 923.0 495.0 1,077.0 930.0 0.0 538.0 8,296.0 424.0 606.0 680.0 1,286.0 74.0 3,070.0 557.0 2,513.0 923.0 526.0 1,026.0 1,104.0 0.0 850.0 8,177.0 371.0 642.0 771.0 1,186.0 100.0 3,070.0 681.0 2,389.0 923.0 513.0 249.0 1,515.0 397.0 736.0 8,668.0 259.0 659.0 827.0 1,249.0 132.0 3,126.0 785.0 2,341.0 924.0 466.0 582.0 968.0 554.0 685.0 8,530.0 316.0 724.0 888.0 0.0 215.0 2,143.0 905.0 1,238.0 921.0 575.0 402.0 738.0 665.0 735.0 8,588.0 399.0 833.0 900.0 0.0 216.0 2,348.0 1,019.0 1,329.0 921.0 635.0 343.0 776.0 678.0 688.0 8,942.0 469.0 852.0 954.0 0.0 244.0 2,519.0 1,076.0 1,443.0 875.0 710.0 346.0 988.0 727.0 446.0 8,903.0 454.0 935.0 996.0 0.0 163.0 2,548.0 1,186.0 1,362.0 875.0 731.0 249.0 452.0 1,020.0 393.0 7,933.0 514.0 854.0 984.0 0.0 204.0 2,556.0 1,249.0 1,307.0 875.0 768.0 250.0 1,264.0 932.0 205.0 8,983.0 454.0 667.0 810.0 0.0 164.0 2,095.0 927.0 1,168.0 875.0 846.0 265.0 298.0 873.0 261.0 5,910.0 590.0 703.0 854.0 0.0 383.0 2,530.0 991.0 1,539.0 874.0 1,115.0 216.0 180.0 676.0 267.0 6,342.0 535.0 786.0 789.0 0.0 338.0 2,448.0 905.0 1,543.0 874.0 1,131.0 222.0 142.0 647.0 332.0 6,794.0 457.0 781.0 775.0 0.0 365.0 2,378.0 918.0 1,460.0 894.0 1,351.0 224.0 215.0 530.0 270.0 6,865.0 0.13% -3.54% -4.89% 2.11% 1.98% 0.05% -1.89% -3.25% 1.30% 17.50% -1.37% -4.99% 1.40% 0.43% 13.07% -2.09% -13.81% -12.27% -7.23% -2.85% 13.82% -2.52% 3.03% -4.81% -0.32% 10.17% -1.05% -17.74% 2.93% -9.54% -2.31% 0.32% -3.20% 4.35% -5.54% #DIV/0! -2.16% -8.24% -7.71% #DIV/0! -1.63% -1.29% 660.0 440.0 0.0 697.0 358.0 0.0 529.0 373.0 0.0 584.0 412.0 0.0 570.0 508.0 302.0 591.0 559.0 317.0 658.0 615.0 384.0 789.0 642.0 421.0 704.0 633.0 446.0 562.0 519.0 454.0 634.0 692.0 486.0 548.0 650.0 514.0 569.0 745.0 593.0 557.0 817.0 666.0 605.0 799.0 677.0 1.49% 9.01% 8.32% 0.60% 4.63% 8.41% -0.62% 4.35% #DIV/0! Interest expense Interest income Gains (losses) & other income (expenses) Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Accounts payable Accrued payroll & benefits Liability for guest loyalty program 11,796.0 12,637.0 11,796.0 12,637.0 988.0 1,159.0 115.0 30.0 14.0 1,088.0 335.0 753.0 6.08% 2.70% #VALUE! 3.94% 2.76% 9.28% 2.38% 2.38% 1.65% #VALUE! 5.22% 2.62% #VALUE! 2.37% 3.28% Other current liabilities Current portion of long-term debt Total current liabilities 817.0 0.0 1,917.0 747.0 0.0 1,802.0 1,063.0 242.0 2,207.0 710.0 64.0 1,770.0 487.0 489.0 2,356.0 469.0 56.0 1,992.0 850.0 15.0 2,522.0 849.0 175.0 2,876.0 630.0 120.0 2,533.0 688.0 64.0 2,287.0 551.0 138.0 2,501.0 491.0 355.0 2,558.0 459.0 407.0 2,773.0 629.0 6.0 2,675.0 655.0 324.0 3,060.0 -0.98% 38.32% 6.00% 3.01% -4.03% 2.65% -1.57% #DIV/0! 3.40% Long-term debt Liability for guest loyalty program Other long-term liabilities Shareholders' equity (deficit) Total Liabilities & stockholder's equity 2,016.0 0.0 1,037.0 3,267.0 8,237.0 2,815.0 0.0 1,012.0 3,478.0 9,107.0 1,553.0 0.0 963.0 3,573.0 8,296.0 1,391.0 0.0 1,178.0 3,838.0 8,177.0 848.0 640.0 743.0 4,081.0 8,668.0 1,692.0 768.0 826.0 3,252.0 8,530.0 1,818.0 847.0 783.0 2,618.0 8,588.0 2,790.0 971.0 876.0 1,429.0 8,942.0 2,986.0 1,090.0 914.0 1,380.0 8,903.0 2,234.0 1,193.0 1,077.0 1,142.0 7,933.0 2,967.0 1,313.0 893.0 1,309.0 8,983.0 2,526.0 1,434.0 883.0 -1,491.0 5,910.0 2,528.0 1,428.0 898.0 -1,285.0 6,342.0 3,147.0 1,475.0 912.0 -1,415.0 6,794.0 3,457.0 1,657.0 891.0 -2,200.0 6,865.0 9.12% 6.79% -3.72% #VALUE! -2.85% 15.09% 9.98% 1.83% #VALUE! -2.31% 3.93% #DIV/0! -1.08% #VALUE! -1.29% Other Data Depreciation & amortization Capital Expenditures Tax Rate Share Repurchases ($) Cash taxes Year end shares outstanding Net income (loss) per share - basic Net income (loss) per share - diluted Cash dividends declared per share Total number of employees Number of common stockholders Year-end stock price Market Value ($Million) Enterprise Value ($Million) Total Rooms Average Daily Rate (ADR) Occupancy REVPAR 2000 2001 2002 2003 2004 2005 2006 2007 195.0 222.0 187.0 160.0 166.0 184.0 188.0 197.0 1,095.0 560.0 292.0 210.0 181.0 780.0 529.0 671.0 36.7% 36.2% 41.2% -2.9% 8.9% 6.7% 39.0% 38.8% 340.0 235.0 252.0 373.0 664.0 1644.0 1546.0 1757.0 182.0 169.0 350.0 482.0 481.4 471.8 462.4 451.6 411.8 389.5 357.1 0.995 0.485 0.575 1.080 1.315 1.545 1.500 1.850 0.945 0.460 0.550 1.025 1.240 1.445 1.410 1.750 0.000 0.000 0.138 0.148 0.165 0.200 0.240 0.288 153,000 140,000 144,000 128,000 133,000 143,000 150,600 151,000 53,053 54,656 55,122 47,202 48,282 45,521 49,505 48,288 42.25 40.65 32.87 46.20 62.98 69.97 47.72 34.18 20,364.5 19,568.9 15,508.1 21,362.9 28,441.8 28,813.6 18,586.9 12,205.7 22,380.5 22,383.9 17,303.1 22,817.9 29,778.8 30,561.6 20,419.9 15,170.7 382,599 417,869 442,926 465,141 482,186 499,165 513,832 535,093 97.37 95.46 90.78 109.62 124.45 140.26 180.73 180.73 73.3% 68.7% 70.1% 67.6% 69.0% 73.4% 75.4% 75.4% 71.37 65.58 63.64 74.10 85.87 102.95 136.27 136.27 ROIC NOPLAT EBITA (amortization/depreciation inseparable) Operating taxes NOPLAT 2000 2001 2002 2003 2004 2005 2006 2007 Mean 2008 2009 2010 2011 2012 2013 2014 190.0 185.0 178.0 168.0 145.0 127.0 148.0 357.0 147.0 307.0 183.0 437.0 404.0 411.0 47.8% 15.6% 16.9% 44.4% 32.7% 30.2% 30.8% 28.2% 434.0 0.0 57.0 1425.0 1145.0 834.0 1510.0 220.0 110.0 68.0 45.0 -17.0 172.0 349.6 358.2 366.9 333.0 310.9 298.0 279.9 1.030 -0.970 1.260 0.560 1.770 2.050 2.600 0.990 -0.970 1.210 0.550 1.720 2.000 2.540 0.338 0.087 0.208 0.388 0.490 0.000 0.000 146,000 137,000 129,000 120,000 127,000 123,000 123,500 46,504 44,867 43,415 42,086 38,726 36,811 34,458 19.45 27.25 41.54 29.17 37.27 49.35 78.03 6,799.7 9,761.0 15,241.0 9,713.6 11,587.2 14,706.3 21,840.6 9,905.7 12,059.0 18,346.0 12,594.6 14,522.2 17,859.3 25,621.6 560,681 595,461 618,104 643,196 660,623 675,623 714,765 195.65 163.64 166.93 179.38 175.14 185.74 150.23 149.07 72.2% 66.3% 70.3% 70.8% 70.9% 70.7% 73.3% 71.2% 141.26 108.49 117.35 127.00 124.17 131.32 110.12 106.39 Median Mean Median 2008 2009 2010 2011 2012 2013 2014 32.7% 163.64 70.8% 110.12 922.0 301.9 620.1 590.0 193.2 396.8 573.0 187.6 385.4 377.0 123.4 253.6 477.0 156.2 320.8 555.0 181.7 373.3 1011.0 331.0 680.0 1188.0 389.0 799.0 785.0 257.0 528.0 -152.0 -49.8 -102.2 695.0 227.6 467.4 526.0 172.2 353.8 940.0 307.8 632.2 988.0 323.5 664.5 1159.0 379.5 779.5 -502.0 3,241.0 1,234.9 1,833.0 -697.0 5,109.9 328.0 2,930.0 1,288.7 1,764.0 -590.0 5,720.7 -221.0 2,589.0 928.5 495.0 -425.0 3,366.5 -471.0 2,513.0 1,162.8 526.0 -328.0 3,402.8 219.0 2,389.0 986.0 513.0 -7.0 4,100.0 180.0 2,341.0 1,095.1 466.0 -141.0 3,941.1 991.0 1,238.0 1,209.2 575.0 -48.0 3,965.2 1,107.0 1,329.0 1,179.8 635.0 -188.0 4,062.8 1,215.0 1,443.0 1,148.4 710.0 -468.0 4,048.4 827.0 1,362.0 1,214.7 731.0 -684.0 3,450.7 1,259.0 1,307.0 1,084.7 768.0 -688.0 3,730.7 -647.0 1,168.0 1,018.6 846.0 -622.0 1,763.6 -578.0 1,539.0 949.3 1,115.0 -631.0 2,394.3 -352.0 1,543.0 997.5 1,131.0 -580.0 2,739.5 -449.0 1,460.0 978.5 1,351.0 -621.0 2,719.5 Invested Capital (with goodwill) 0.0 5,109.9 0.0 5,720.7 923.0 4,289.5 923.0 4,325.8 923.0 5,023.0 924.0 4,865.1 921.0 4,886.2 921.0 4,983.8 875.0 4,923.4 875.0 4,325.7 875.0 4,605.7 875.0 2,638.6 874.0 3,268.3 874.0 3,613.5 894.0 3,613.5 ROIC (w/o goodwill) ROIC (with goodwill) 12.14% 12.14% 6.94% 6.94% 11.45% 8.98% 7.45% 5.86% 7.82% 6.39% 9.47% 7.67% 17.15% 13.92% 19.67% 16.03% 13.04% 10.72% -2.96% -2.36% 12.53% 10.15% 20.06% 13.41% 26.40% 19.34% 24.26% 18.39% 28.66% 21.57% 14.3% 11.3% 12.5% 10.7% RATIOS LIQUIDITY Current Quick Operating Cycle Cash Cycle Cash/Revenue Net Working Capital 2000 2006 2007 2008 2010 2011 2012 2013 2014 Mean Median 0.5 0.5 NMF NMF 0.0 -1,234.0 0.5 0.5 NMF NMF 0.0 -1,298.0 0.9 0.7 0.8 0.7 0.0 -149.3 0.0 -410.0 Invested Capital Operating Working Capital Net PP&E Capitalized operating leases Intangible assets Other operating assets (net of liabilities) Invested Capital (w/o goodwill) Goodwill 0.7 0.7 NMF NMF 0.0 -502.0 2001 1.2 1.1 NMF NMF 0.1 328.0 2002 0.8 0.8 NMF NMF 0.0 -463.0 2003 0.7 0.7 NMF NMF 0.0 -535.0 2004 0.8 0.8 NMF NMF 0.1 -410.0 2005 1.0 1.0 NMF NMF 0.0 18.0 1.3 0.8 NMF NMF 0.0 792.0 1.2 0.7 NMF NMF 0.0 696.0 1.3 0.5 NMF NMF 0.0 835.0 2009 1.2 0.6 NMF NMF 0.0 564.0 1.4 0.8 NMF NMF 0.0 881.0 0.7 0.7 NMF NMF 0.0 -772.0 0.6 0.6 NMF NMF 0.0 -1,139.0 LEVERAGE Debt/Total Assets Debt/Equity (book) Debt/Equity (market) EBIT/Interest EBITDA/Interest 0.2 0.6 0.3 0.8 0.2 0.5 0.2 0.4 0.2 0.3 0.2 0.5 0.2 0.7 0.3 2.1 0.3 2.3 0.3 2.0 0.3 2.4 0.5 -1.9 0.5 -2.3 0.5 -2.2 0.6 -1.7 0.3 0.3 0.3 0.5 9.2 11.2 5.4 7.4 6.7 8.8 3.4 4.9 4.8 6.5 5.2 7.0 8.2 9.7 6.5 7.5 4.8 6.0 -1.3 0.3 3.9 4.9 3.2 4.2 6.9 7.9 8.2 9.3 10.1 11.4 5.7 7.1 5.4 7.4 EFFICIENCY/UTILIZATION Days in A/R Days in Inventory Days in A/P Sales/Total Assets Sales/Net Working Capital Sales/Fixed Assets 26.5 NMF NMF 1.2 NMF 3.1 22.0 NMF NMF 1.1 31.0 3.5 22.7 NMF NMF 1.0 NMF 3.3 28.3 NMF NMF 1.1 NMF 3.6 28.8 NMF NMF 1.2 NMF 4.2 26.5 NMF NMF 1.4 641.7 4.9 33.5 NMF NMF 1.4 15.4 9.8 32.3 NMF NMF 1.5 18.7 9.8 25.4 NMF NMF 1.4 15.4 8.9 28.0 NMF NMF 1.4 19.3 8.0 29.3 NMF NMF 1.3 13.3 8.9 25.9 NMF NMF 2.1 NMF 10.5 31.8 NMF NMF 1.9 NMF 7.7 30.9 NMF NMF 1.9 NMF 8.3 29.1 NMF NMF 2.0 NMF 9.4 28.1 28.3 1.5 107.8 6.9 1.4 18.7 8.0 NMF 9.20% 4.78% 7.82% 14.66% NMF 5.81% 2.32% 5.01% 6.79% NMF 6.79% 3.28% 4.57% 7.75% NMF 4.18% 5.57% 4.78% 13.08% NMF 4.72% 5.90% 4.83% 14.60% NMF 4.81% 5.79% 5.94% 20.57% NMF 8.31% 5.00% 7.24% 23.22% NMF 9.15% 5.36% 8.35% 48.71% NMF 6.10% 2.81% 5.09% 26.23% NMF -1.39% -3.24% -1.10% -30.91% NMF 5.94% 3.92% 6.70% 34.99% NMF 4.27% 1.61% 6.23% -13.28% NMF 7.96% 4.83% 10.44% -44.44% NMF 7.73% 4.90% 10.55% -44.24% NMF 8.40% 5.46% 12.00% -34.23% 6.1% 3.9% 6.6% 2.9% 6.1% 4.8% 6.2% 13.1% 2.2 24.3 20.0 2.2 37.9 27.6 2.0 30.2 22.8 2.5 60.5 42.5 2.9 62.4 46.3 2.6 55.1 41.4 1.7 20.2 17.0 1.2 12.8 11.0 0.8 12.6 10.2 1.1 -79.3 365.4 1.6 26.4 21.0 1.0 23.9 18.1 1.2 15.4 13.4 1.4 18.1 16.0 1.9 22.1 19.6 1.8 22.8 46.2 1.7 23.9 20.0 2000 176.0 17.0 0.0837 1,234.9 2001 183.0 16.0 0.0795 1,288.7 2002 124.0 18.0 0.0780 928.5 2003 147.0 17.0 0.0676 1,162.8 2004 121.0 17.0 0.0639 986.0 2005 124.0 19.0 0.0606 1,095.1 2006 142.0 19.0 0.0648 1,209.2 2007 142.0 18.0 0.0648 1,179.8 2008 153.0 17.0 0.0744 1,148.4 2009 160.0 17.0 0.0729 1,214.7 2010 143.0 14.0 0.0604 1,084.7 2011 136.0 13.0 0.0566 1,018.6 2012 126.0 12.0 0.0494 949.3 2013 134.0 12.0 0.0510 997.5 2014 129.0 12.0 0.0485 978.5 PROFITABILITY Gross Margins Operating Margin Net Margins Return on Assets (ROA) Return on Equity (ROE) Enterprise Value (EV) ($mill) EV / Revenue EV / EBIT EV / EBITDA Capitalized Operating Leases Rent Expense Asset Life Cost of Debt (NWL had Baa (BBB) rating historic Present Value OTHER METRICS Depreciation / Net PPE Dividend Payout Ratiio Def Taxes/Revenue Other CA/Revenues PPE/Revenues Goodwill/Revenue Intangibles/Revenue Other non-current Asset/Revenue Unearned revenue/Revenue Warranty Obligations/Revenue Pension liabilities/Revenues Income taxes payable/Revenues LT unearned revenue/Revenues Other non-current liabilities/Revenues Cap Ex/Gross PPE Return on cash & Marketable securities R R Common Sized Income Statement 2000 2001 2002 0.00 0.00 0.04 0.00 0.08 0.03 0.00 0.00 0.02 0.00 0.00 0.05 0.00 0.00 0.68 0.00 0.00 0.16 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.16 0.00 0.00 0.21 0.00 0.00 0.45 0.00 0.00 0.55 0.00 1.00 1.00 1.00 2003 0.04 0.03 0.01 0.07 0.69 0.00 0.13 0.03 0.00 0.00 0.00 0.00 1.00 2004 0.04 0.03 0.01 0.07 0.69 0.00 0.12 0.03 0.00 0.00 0.00 0.00 1.00 2005 0.04 0.03 0.02 0.08 0.66 0.00 0.13 0.04 0.00 0.00 0.00 0.00 1.00 2006 0.05 0.03 0.02 0.09 0.66 0.00 0.13 0.01 0.00 0.00 0.00 0.00 1.00 2007 0.05 0.03 0.03 0.10 0.66 0.00 0.13 0.00 0.00 0.00 0.00 0.00 1.00 2008 0.05 0.04 0.02 0.10 0.69 0.00 0.11 0.00 0.00 0.00 0.00 0.00 1.00 2009 0.05 0.04 0.01 0.09 0.70 0.00 0.10 0.00 0.00 0.00 0.00 0.00 1.00 2010 0.05 0.04 0.02 0.09 0.70 0.00 0.10 0.00 0.00 0.00 0.00 0.00 1.00 2011 0.05 0.04 0.02 0.09 0.72 0.00 0.09 0.00 0.00 0.00 0.00 0.00 1.00 2012 0.05 0.05 0.02 0.08 0.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 2013 0.05 0.05 0.02 0.07 0.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 2014 0.05 0.05 0.02 0.07 0.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 Mean 0.04 0.04 0.02 0.07 0.62 0.01 0.07 0.01 0.01 0.01 0.03 0.04 1.00 Median 0.05 0.04 0.02 0.08 0.69 0.00 0.10 0.00 0.00 0.00 0.00 0.00 1.00 CV 0.4101 0.4709 0.4844 0.4461 0.4138 3.8730 0.8619 1.5612 3.8730 3.8730 3.8730 3.8730 0.0000 0.00 0.93 0.93 0.07 0.00 0.01 0.01 -0.02 0.06 0.02 0.03 0.00 0.96 0.96 0.04 0.00 0.01 0.01 0.01 0.05 0.00 0.06 0.10 0.85 0.95 0.05 0.00 0.01 0.01 0.01 0.06 0.01 0.06 0.11 0.85 0.95 0.05 0.00 0.01 0.01 0.02 0.06 0.00 0.06 0.10 0.82 0.92 0.08 0.00 0.01 0.00 0.01 0.08 0.03 0.05 0.11 0.80 0.91 0.09 0.00 0.01 0.00 0.01 0.09 0.03 0.05 0.10 0.84 0.94 0.06 0.00 0.01 0.00 0.00 0.05 0.03 0.03 0.15 0.86 1.01 -0.01 0.00 0.01 0.00 -0.02 -0.04 -0.01 -0.03 0.09 0.85 0.94 0.06 0.00 0.02 0.00 0.00 0.05 0.01 0.04 0.10 0.86 0.96 0.04 0.00 0.01 0.00 0.00 0.03 0.01 0.02 0.00 0.92 0.92 0.08 0.00 0.01 0.00 0.00 0.07 0.02 0.05 0.00 0.92 0.92 0.08 0.00 0.01 0.00 0.00 0.07 0.02 0.05 0.00 0.92 0.92 0.08 0.00 0.01 0.00 0.00 0.08 0.02 0.05 0.06 0.88 0.94 0.06 0.00 0.01 0.01 0.00 0.06 0.02 0.04 0.09 0.86 0.94 0.06 0.00 0.01 0.00 0.00 0.06 0.02 0.05 0.9955 0.0560 0.0288 0.4413 #DIV/0! 0.1779 0.8895 -27.8356 0.5551 0.7460 0.6112 Common Sized Balance Sheet 2000 2001 2002 0.04 0.09 0.02 0.09 0.07 0.06 0.01 0.01 0.00 0.00 0.00 0.00 0.03 0.07 0.12 0.17 0.23 0.21 2003 0.03 0.09 0.00 0.00 0.04 0.15 2004 0.09 0.09 0.00 0.02 0.03 0.22 2005 0.02 0.10 0.00 0.02 0.09 0.24 2006 0.02 0.13 0.14 0.02 0.07 0.39 2007 0.04 0.13 0.17 0.02 0.04 0.40 2008 0.02 0.10 0.22 0.02 0.02 0.38 2009 0.01 0.11 0.18 0.03 0.03 0.36 2010 0.06 0.10 0.17 0.03 0.02 0.38 2011 0.02 0.15 0.00 0.05 0.01 0.22 2012 0.01 0.16 0.00 0.04 0.01 0.23 2013 0.02 0.16 0.00 0.04 0.07 0.28 2014 0.02 0.16 0.00 0.05 0.06 0.28 Mean 0.03 0.11 0.06 0.02 0.05 0.28 Median 0.02 0.10 0.00 0.02 0.04 0.24 CV 0.7552 0.2940 1.4274 0.7415 0.6951 0.3003 0.00 0.91 0.91 0.09 0.00 0.01 0.01 -0.01 0.08 0.03 0.05 0.00 0.94 0.94 0.06 0.00 0.01 0.01 -0.02 0.04 0.01 0.02 0.07 0.15 0.08 0.11 0.04 0.45 0.06 0.39 0.00 0.22 0.09 0.08 0.00 0.04 1.00 0.06 0.09 0.07 0.13 0.04 0.38 0.06 0.32 0.00 0.19 0.09 0.11 0.00 0.05 1.00 0.05 0.07 0.08 0.15 0.02 0.37 0.06 0.31 0.11 0.06 0.13 0.11 0.00 0.06 1.00 0.05 0.07 0.08 0.16 0.01 0.38 0.07 0.31 0.11 0.06 0.13 0.14 0.00 0.10 1.00 0.04 0.07 0.09 0.14 0.01 0.35 0.08 0.28 0.11 0.06 0.03 0.17 0.05 0.08 1.00 0.03 0.08 0.10 0.15 0.02 0.37 0.09 0.27 0.11 0.05 0.07 0.11 0.06 0.08 1.00 0.04 0.08 0.10 0.00 0.03 0.25 0.11 0.14 0.11 0.07 0.05 0.09 0.08 0.09 1.00 0.04 0.09 0.10 0.00 0.02 0.26 0.11 0.15 0.10 0.07 0.04 0.09 0.08 0.08 1.00 0.05 0.10 0.11 0.00 0.03 0.28 0.12 0.16 0.10 0.08 0.04 0.11 0.08 0.05 1.00 0.06 0.12 0.13 0.00 0.02 0.32 0.15 0.17 0.11 0.09 0.03 0.06 0.13 0.05 1.00 0.06 0.10 0.11 0.00 0.02 0.28 0.14 0.15 0.10 0.09 0.03 0.14 0.10 0.02 1.00 0.08 0.11 0.14 0.00 0.03 0.35 0.16 0.20 0.15 0.14 0.04 0.05 0.15 0.04 1.00 0.09 0.11 0.13 0.00 0.06 0.40 0.16 0.24 0.14 0.18 0.03 0.03 0.11 0.04 1.00 0.08 0.12 0.12 0.00 0.05 0.36 0.13 0.23 0.13 0.17 0.03 0.02 0.10 0.05 1.00 0.07 0.11 0.11 0.00 0.05 0.35 0.13 0.21 0.13 0.20 0.03 0.03 0.08 0.04 1.00 0.06 0.10 0.10 0.06 0.03 0.34 0.11 0.24 0.10 0.12 0.06 0.09 0.07 0.06 1.00 0.06 0.10 0.10 0.00 0.03 0.35 0.11 0.23 0.11 0.09 0.04 0.09 0.08 0.05 1.00 0.2981 0.2263 0.1997 1.2813 0.5159 0.1606 0.3360 0.3247 0.4314 0.5221 0.6128 0.5055 0.7241 0.3849 0.0000 0.08 0.05 0.00 0.08 0.04 0.00 0.06 0.04 0.00 0.07 0.05 0.00 0.07 0.06 0.03 0.07 0.07 0.04 0.08 0.07 0.04 0.09 0.07 0.05 0.08 0.07 0.05 0.07 0.07 0.06 0.07 0.08 0.05 0.09 0.11 0.09 0.09 0.12 0.09 0.08 0.12 0.10 0.09 0.12 0.10 0.08 0.08 0.05 0.08 0.07 0.05 0.1174 0.3629 0.7717 0.10 0.00 0.23 0.08 0.00 0.20 0.13 0.03 0.27 0.09 0.01 0.22 0.06 0.06 0.27 0.05 0.01 0.23 0.10 0.00 0.29 0.09 0.02 0.32 0.07 0.01 0.28 0.09 0.01 0.29 0.06 0.02 0.28 0.08 0.06 0.43 0.07 0.06 0.44 0.09 0.00 0.39 0.10 0.05 0.45 0.08 0.02 0.31 0.09 0.01 0.28 0.2285 1.0628 0.2697 0.24 0.00 0.13 0.40 1.00 0.31 0.00 0.11 0.38 1.00 0.19 0.00 0.12 0.43 1.00 0.17 0.00 0.14 0.47 1.00 0.10 0.07 0.09 0.47 1.00 0.20 0.09 0.10 0.38 1.00 0.21 0.10 0.09 0.30 1.00 0.31 0.11 0.10 0.16 1.00 0.34 0.12 0.10 0.16 1.00 0.28 0.15 0.14 0.14 1.00 0.33 0.15 0.10 0.15 1.00 0.43 0.24 0.15 -0.25 1.00 0.40 0.23 0.14 -0.20 1.00 0.46 0.22 0.13 -0.21 1.00 0.50 0.24 0.13 -0.32 1.00 0.30 0.11 0.12 0.16 1.00 0.31 0.11 0.12 0.16 1.00 0.3891 0.7839 0.1798 1.7187 0.0000 Unlevered Equity Beta Marriott Book Value of Debt (Q3 2015 4,304 Starwood 2,944 Asset Beta Calculations Marriott Starwood Debt (Book Value) 4,304 2,944 Shares Outstanding Pre-Ann Price Equity (Market Value) 256.84 73.72 18,934 168.70 72.27 12,192 Shares Outstanding Pre-Ann Price Equity (Market Value) 256.84 73.72 18,934 168.70 72.27 12,192 Total Capital 23,238 15,136 Total Capital 23,238 15,136 18.5% 0.33 81.5% 1.15 19.5% 0.27 80.5% 1.30 18.5% 0.20 81.5% 1.30 19.5% 0.20 80.5% 1.35 1.00 1.10 1.10 1.13 Debt/Total Capital Tax Rate Equity/Total Capital Equity Beta Unlevered Beta Relevered Equity Beta Pre-acquisition debt Acquisition debt Total Post-acquisition debt Approximate Equity Value Debt/Total Capital Debt Beta (assumed)* Equity/Total Capital Equity Beta Asset Beta 7,248 0 7,248 31,126 Unlevered beta 1.04 Relevered Beta 1.20 Note: An unlevered beta is conceptually the same as an asset beta. Both of these betas are conceptually the same as an portfolio beta. * Bruner observes that the D for investment grade issue ranges from 0.15 to 0.25 Gain in Operating Income 2016 Gains from cost reduction Gains from increase in revs Total Annual Gains 2017 2018 2019 2020 2021 2022 0 200 200 200 200 200 200 0 0 0 0 0 0 0 0 200 200 200 200 200 200 Cost of Equity Risk Free Rate MRP Beta E(RE) or cost of equity Sensitity Analysis Sensitivity factor Tax Rate Inflation Rate Year After Tax Cash Flows Discount Factor (DF) PV (individual cash flows) Sum of PV's PV (continuing value) PV (cost savings) Shares outstanding Savings/share Pre-Bid Price Max Bid Savings/Share Tax Rate Max Bid Tax Rate Max Bid Risk-free Rate Max Bid 0.0300 0.0360 0.0420 0.0480 0.0540 0.0600 0.0660 0.0550 0.0550 0.0550 0.0550 0.0550 0.0550 0.0550 1.20 1.20 1.20 1.20 1.20 1.20 1.20 0.0960 0.1020 0.1080 0.1140 0.1200 0.1260 0.1320 100% 38% 3% 1 2 3 4 5 6 7 0 124 124 124 124 124 124 0.9124 0.8234 0.7352 0.6493 0.5674 0.4906 0.4198 0 102 91 80 70 61 52 456.8 525.4 982.3 168.7 5.82 72.27 78.09 5.82 0.35 0.36 0.37 0.38 0.39 0.40 0.41 78.09 0.35 0.36 0.37 0.38 0.39 0.40 0.41 78.09 0.03 0.065 78.09 Note: DF = 1 / (1 + r)t (growing pepetuity) 20% 5.82 5.82 5.82 5.82 5.82 5.82 5.82 Sensitivity Factor 30% 40% 50% 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 5.82 60% 5.82 5.82 5.82 5.82 5.82 5.82 5.82 70% 5.82 5.82 5.82 5.82 5.82 5.82 5.82 80% 5.82 5.82 5.82 5.82 5.82 5.82 5.82 90% 5.82 5.82 5.82 5.82 5.82 5.82 5.82 100% 5.82 5.82 5.82 5.82 5.82 5.82 5.82 110% 5.82 5.82 5.82 5.82 5.82 5.82 5.82 120% 5.82 5.82 5.82 5.82 5.82 5.82 5.82 20% 78.09 78.09 78.09 78.09 78.09 78.09 78.09 Sensitivity Factor 30% 40% 50% 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 78.09 60% 78.09 78.09 78.09 78.09 78.09 78.09 78.09 70% 78.09 78.09 78.09 78.09 78.09 78.09 78.09 80% 78.09 78.09 78.09 78.09 78.09 78.09 78.09 90% 78.09 78.09 78.09 78.09 78.09 78.09 78.09 100% 78.09 78.09 78.09 78.09 78.09 78.09 78.09 110% 78.09 78.09 78.09 78.09 78.09 78.09 78.09 120% 78.09 78.09 78.09 78.09 78.09 78.09 78.09 20% 73.43 73.12 Sensitivity Factor 30% 40% 50% 60% 74.02 74.60 75.18 75.76 73.55 73.97 74.40 74.83 70% 76.35 75.25 80% 76.93 75.68 90% 77.51 76.11 100% 78.09 76.53 110% 78.67 76.96 120% 79.26 77.38 70% 80% 90% 100% 110% 120% 20% Sensitivity Factor 30% 40% 50% 60% MRP 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 73.51 73.43 73.37 73.31 73.25 73.20 73.16 74.13 74.02 73.92 73.82 73.74 73.67 73.60 74.75 74.60 74.46 74.34 74.23 74.13 74.04 75.37 75.18 75.01 74.86 74.72 74.60 74.49 75.99 75.76 75.56 75.38 75.21 75.07 74.93 76.61 76.35 76.11 75.90 75.71 75.53 75.37 77.23 76.93 76.66 76.41 76.20 76.00 75.82 77.85 77.51 77.21 76.93 76.69 76.46 76.26 78.47 78.09 77.75 77.45 77.18 76.93 76.70 79.09 78.67 78.30 77.97 77.67 77.40 77.15 79.71 79.26 78.85 78.49 78.16 77.86 77.59 This data is for the period Q42014 Q32015 Beta Bond Rating 834.3 235.7 224.4 124.1 31.5% 817.5 -400.6 2,877.4 3,694.9 50.82 56.62 38.5% 124.0 138.7 11.42% 11.87% 0.90 BB+ Trailing P/E 23.2 Forward P/E 20.7 Price/Book NMF EV/Revenue 4.4 EV/EBIT 16.5 EV/EBITDA 15.7 2016 EV/EBITDA (Starwood Financial Advisor 14.4 2016 EV/EBITDA (Deutchse Bank) 11.5 8,904.0 3,354.0 2,688.0 2,762.0 1,389.0 670.0 2,035.0 652.0 300.0 748.0 649.0 269.0 47.6% 1.6% 36.0% 10,816.0 4,278.0 1,377.0 5,214.0 6,960.0 4,130.0 23,540.8 12,551.9 7,109.3 34,356.8 16,829.9 8,486.3 23.84 16.70 51.22 987.45 751.61 138.80 4.8% 5.6% 3.6% 809.7 518.6 130.5 967.7 556.2 230.0 7.02% 3.70% 9.30% 19.51% 7.25% 76.28% 1.20 NR 31.5 24.3 4.5 3.9 16.9 12.4 11.8 10.9 1.30 BBB19.3 22.6 1.8 5.0 25.8 12.1 1.15 BBB 26.4 30.9 1.7 3.2 28.3 12.7 10.0 14.6 2,810.0 1,595.0 961.0 552.0 36.4% 5,053.0 1,255.0 8,998.5 14,051.5 77.50 116.11 10.3% 592.2 653.7 3.64% 10.39% 1.15 BBB16.3 13.8 7.2 5.0 14.6 8.8 8.6 Invested Capital Operating Working Capital Net PP&E Capitalized operating leases Intangible assets Other operating assets (net of liabilities Invested Capital (w/o goodwill) 170.7 86.8 68.7 12.2 -18.5 319.9 336.0 -287.0 497.0 269.0 9,132.0 10,707.0 4,032.0 2,360.0 1,878.6 654.2 420.9 640.3 6,708.0 0.0 541.0 1,114.0 -1,624.0 404.0 -330.0 9.0 16,430.6 11,478.2 5,160.9 4,392.3 Goodwill Invested Capital (with goodwill) 79.5 399.4 5,902.0 0.0 130.0 1,551.0 22,332.6 11,478.2 5,290.9 5,943.3 Rent Expense 11.6 Asset Life 8.0 Cost of Debt ((~BBB) rating historically) 0.0439 Present Value 68.7 263.0 10.0 0.0400 1878.6 Enterprise Value JAH Data EBIT EBITDA Peer Average multiple Peer Median mulitple Peer Max multiple Peer Min multiple ### ### ### ### 12,230.5 12,327.2 15,535.3 999.8 Equity Value Less: Debt Less: Value of operating leases Less: Deferred Taxes 2,944.0 720.7 699.0 2,944.0 720.7 699.0 Peer Average multiple Peer Median mulitple Peer Max multiple Peer Min multiple ### 8,990.7 ### 7,202.1 7,866.8 7,963.4 11,171.6 NMF 168.7 168.7 69.85 53.29 106.77 42.69 46.63 47.20 66.22 NMF Equity Value per share Shares outstanding Peer Average multiple Peer Median mulitple Peer Max multiple Peer Min multiple Current Price 72.27 40.0 39.0 0.0355 654.2 Revenue Growth 2016 Wynd am W orldw ide [W Y N] ST] Hyatt Hotels [H] & Reso rts [H otels Host H Hotels [CHH Hilton Wo rld wide Holdin gs [H LT] Choice Peers Revenue TTM ($M) EBITDA TTM ($M) EBIT TTM ($M) Earnings TTM ($M) Taxes Interest-bearing debt ($M) Book Value of Equity ($M) Market Capitalization ($M) Enterprise Value (EV) Price (Nov 16 2015) Shares outstanding (mill) ROIC Earnings Forecast 2015($M) Earnings Forecast 2016 ($M) Forecasted revenue growth 2016 Forecasted earnings growth 2016 12.00% 39.0 18.0 0.0371 420.9 94.0 10.0 0.0468 640.3 1 10.00% HOT MAR 5,823.0 14339 991.0 1,470.0 791.0 1,331.0 557.0 859.0 20.0% 31.8% 2,944.0 3,781.0 1,525.0 -2,200.0 12,480.6 20,634.2 14,005.6 18,434.2 72.3 73.7 172.7 279.9 13.6% 21.6% 519.8 873.3 571.6 1,044.0 1.7% 8.2% 9.97% 19.55% 1.30 BBB 22.4 21.8 8.2 2.4 17.7 14.1 12.9 4 7 8.00% 2 ROIC Revenue Growth 2016 6.00% 4.00% 3 2.00% 6 0.00% 0.0% 5.0% 1.15 24.0 19.8 -9.4 1.3 13.8 12.5 13.4 5 Mean Median 23.3 23.2 22.5 22.6 3.8 3.2 4.3 4.4 20.4 16.9 12.3 12.4 Max 31.5 30.9 7.2 5.0 28.3 15.7 Min 16.3 13.8 1.7 3.2 14.6 8.8 10.0% 15.0% ROIC 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 1 ROIC Revenue Growth 2016 35.0% 40.0% 45.0% Starwood Pro Forma Income Statement w/o synergies Assumptions g(sales) SG&A/Sales Depre/NPPE Cost of Debt Net non-oper exp/Sales Tax Rate Net sales Total operating costs & expenses Depreciation & amortization Operating income (loss) Interest expense Net nonoperating income (expense ) Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Act. 2014 5,983.0 4,817.0 283.0 883.0 97.0 10.0 782.0 149.0 633.0 Est. 2015 5,803.5 4,672.5 298.9 832.1 100.0 -0.0 732.1 212.3 519.8 0.050 0.820 0.080 0.053 0.010 0.290 0.050 0.820 0.080 0.053 0.010 0.290 0.050 0.820 0.080 0.053 0.010 0.290 0.050 0.820 0.080 0.053 0.010 0.290 0.050 0.820 0.080 0.053 0.010 0.290 0.050 0.820 0.080 0.053 0.010 0.290 0.050 0.820 (6 year historical + financial goals) 0.080 (6 year historical) 0.053 (YTM on BBB-rated corporate debt/HOT Debt) 0.010 (6 year historical) 0.290 (15 year historical & VL estimate) Est. Est. Est. Est. Est. Est. Est. 2016 2017 2018 2019 2020 2021 2022 6,093.7 6,398.4 6,718.3 7,054.2 7,406.9 7,777.3 8,166.1 4,996.8 5,246.7 5,509.0 5,784.4 6,073.7 6,377.4 6,696.2 176.0 181.7 187.1 193.1 199.7 206.9 214.6 920.9 970.0 1,022.2 1,076.6 1,133.5 1,193.0 1,255.3 153.7 154.1 156.7 159.5 162.4 165.4 168.6 60.9 64.0 67.2 70.5 74.1 77.8 81.7 828.1 752.0 798.3 846.6 897.1 949.8 1,005.0 240.1 218.1 231.5 245.5 260.1 275.4 291.5 588.0 533.9 566.8 601.1 636.9 674.4 713.6 Assumptions Cash/Revenue Days in A/R Inventory/Revenue Securitized NP (CA)/Revenue Prepaid Expenses/Revenue Gross PPE/Revenue Securitized NP (LTA)/Revenue Other Assets/Revenues 0.170 36 0.057 0.01 0.025 0.82 0.09 0.22 0.160 36 0.057 0.01 0.025 0.82 0.09 0.21 0.150 36 0.057 0.01 0.025 0.82 0.09 0.20 0.140 36 0.057 0.01 0.025 0.82 0.09 0.19 0.130 36 0.057 0.01 0.025 0.82 0.09 0.18 0.120 36 0.057 0.01 0.025 0.82 0.09 0.17 0.120 (converge to 5 year historical) 36 (15 year historical) 0.057 (15 year historical) 0.01 (5 year historical) 0.025 (15 year historical) 0.82 (most recent year, accounts for clear downtrend) 0.09 (6 year historical) 0.17 (converge to 5 year historical) A/P / Revenue Accrued Expenses/revenue Debt/Total Assets Point Liability/Revenu Other non-current Lia/Sales 0.017 0.350 0.35 0.125 0.20 0.017 0.350 0.35 0.125 0.20 0.017 0.350 0.35 0.125 0.20 0.017 0.350 0.35 0.125 0.20 0.017 0.350 0.35 0.125 0.20 0.017 0.350 0.35 0.125 0.20 0.017 (most recent year, accounts for clear downtrend) 0.350 (6 year historical) 0.35 (5 year historical and 2015 FYE balance) 0.125 0.20 (6 year historical) Jarden Pro Forma Balance Sheet w/o synergies Act. 2014 Cash & cash equivalents 1,019.0 Accounts receivable, net 661.0 Inventories 236.0 Securitized vacation ownership notes recei 47.0 Prepaid expenses & other current assets 159.0 Total current assets 2,122.0 Est. 2015 1,050.0 650.0 250.0 50.0 150.0 2,150.0 Est. Est. Est. Est. Est. Est. Est. 2016 2017 2018 2019 2020 2021 2022 1,035.9 1,023.7 1,007.7 987.6 962.9 933.3 979.9 601.0 631.1 662.6 695.8 730.5 767.1 805.4 347.3 364.7 382.9 402.1 422.2 443.3 465.5 60.9 64.0 67.2 70.5 74.1 77.8 81.7 152.3 160.0 168.0 176.4 185.2 194.4 204.2 2,197.6 2,243.5 2,288.5 2,332.3 2,374.9 2,415.9 2,536.6 Property, plant & equipment, at cost Less: accumulated depreciation Property, plant & equipment, net Goodwill Intangibles, net Vacation ownership interest notes receivab Other assets Total assets 4,750.0 2,550.0 2,200.0 1,950.0 0.0 700.0 1,400.0 8,400.0 4,996.8 2,726.0 2,270.8 1,950.0 0.0 548.4 1,340.6 8,307.4 4,882.0 2,248.0 2,634.0 1,956.0 0.0 522.0 1,226.0 8,460.0 5,246.7 5,509.0 5,784.4 2,907.7 3,094.8 3,287.9 2,339.0 2,414.2 2,496.5 1,950.0 1,950.0 1,950.0 0.0 0.0 0.0 575.9 604.6 634.9 1,340.6 1,340.6 1,340.6 8,448.9 8,597.9 8,754.3 6,073.7 6,377.4 6,696.2 3,487.6 3,694.5 3,909.2 2,586.0 2,682.8 2,787.1 1,950.0 1,950.0 1,950.0 0.0 0.0 0.0 666.6 700.0 735.0 1,340.6 1,340.6 1,340.6 8,918.1 9,089.2 9,349.3 Accounts payable Accrued expenses Total current liabilities 101.0 1,979.0 2,080.0 100.0 2,000.0 2,100.0 103.6 108.8 114.2 119.9 125.9 132.2 138.8 2,132.8 2,239.4 2,351.4 2,469.0 2,592.4 2,722.0 2,858.1 2,236.4 2,348.2 2,465.6 2,588.9 2,718.3 2,854.3 2,997.0 Long-term debt Deferred taxes on income, net Starwood Preferred Guest point liability Benefit plan liabilities Other non-current liabilities Total stockholders' equity Total liabilities & stockholders' equity 2,944.0 -161.0 721.0 53.0 1,295.0 1,528.0 8,460.0 2,900.0 0.0 750.0 55.0 1,245.0 1,350.0 8,400.0 2,907.6 2,957.1 3,009.3 3,064.0 3,121.3 3,181.2 3,272.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (deferred tax assets netted against def. tax lia; results in +cash flow in 2016 761.7 799.8 839.8 881.8 925.9 972.2 1,020.8 55.0 55.0 55.0 55.0 55.0 55.0 55.0 1,218.7 1,279.7 1,343.7 1,410.8 1,481.4 1,555.5 1,633.2 1,128.0 1,009.1 884.6 753.8 616.2 471.1 371.1 8,307.4 8,448.9 8,597.9 8,754.3 8,918.1 9,089.2 9,349.3 ROIC NOPLAT Operating Income Amortization Operating taxes NOPLAT 2014 2015 2016 2018 2019 2021 2022 1,133.5 0.0 260.1 873.4 1,193.0 0.0 275.4 917.6 1,255.3 0.0 291.5 963.8 832.1 0.0 212.3 619.8 Invested Capital Operating Working Capital Net PP&E Capitalized operating leases Intangible assets Other operating assets (net of liabilities) Invested Capital (w/o goodwill) 42.0 2,634.0 511.2 0.0 -69.0 3,118.2 50.0 2,200.0 562.4 0.0 155.0 2,967.4 -38.8 -104.7 -177.2 -256.6 -343.5 -438.4 -460.3 2,270.8 2,339.0 2,414.2 2,496.5 2,586.0 2,682.8 2,787.1 590.5 620.0 651.0 683.5 717.7 753.6 791.3 (grows at same rate as revenues) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (assumes no acquisitions) 121.9 60.9 -3.0 -70.2 -140.8 -214.8 -292.6 2,944.4 2,915.2 2,885.0 2,853.3 2,819.5 2,783.2 2,825.4 Goodwill Invested Capital (with goodwill) 2,880.2 5,998.4 1,950.0 4,917.4 1,950.0 1,950.0 4,894.4 4,865.2 ROIC (w/o goodwill) ROIC (with goodwill) 24.27% 12.62% 20.89% 12.60% 23.12% 25.80% 27.41% 29.13% 30.98% 32.97% 34.11% 13.91% 15.46% 16.35% 17.30% 18.31% 19.39% 20.18% Free Cash Flow NOPLAT Plus: Depreciation = Gross Cash Flow 2014 2015 2016 680.7 176.0 856.7 2017 752.0 181.7 933.6 2018 790.7 187.1 977.8 2019 831.1 193.1 1,024.2 2020 873.4 199.7 1,073.1 Less: _ in operating working capital Less: Capital Expenditures = Gross Investment -88.8 246.8 158.0 -65.9 249.8 183.9 -72.4 262.3 189.9 -79.4 275.4 196.0 -86.9 289.2 202.3 -94.9 303.7 208.7 -21.9 318.9 296.9 Free Cash Flow 698.7 749.7 787.9 828.2 870.8 915.7 881.5 FCF from Assets Continuing Value 970.0 1,022.2 1,076.6 0.0 0.0 0.0 218.1 231.5 245.5 752.0 790.7 831.1 2020 883.0 0.0 126.1 756.9 WACC % Debt (target) % Equity (target) Tax Rate Cost of debt Risk free rate Market Risk Premium Beta Cost of Equity WACC 920.9 0.0 240.1 680.7 2017 1,950.0 4,835.0 1,950.0 4,803.3 1,950.0 1,950.0 1,950.0 (assumes no acquisitions) 4,769.5 4,733.2 4,775.4 2021 2022 917.6 963.8 206.9 214.6 1,124.5 1,178.4 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 65.0% 65.0% 65.0% 65.0% 65.0% 65.0% 65.0% 29.0% 29.0% 29.0% 29.0% 29.0% 29.0% 29.0% 4.80% 5.40% 6.00% 6.60% 7.20% 7.80% 8.40% 3.00% 3.60% 4.20% 4.80% 5.40% 6.00% 6.60% (allow risk-free rate to converge to long-run average) 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 1.30 1.30 1.30 1.30 1.30 1.30 1.30 10.15% 10.75% 11.35% 11.95% 12.55% 13.15% 13.75% 7.79% 8.33% 8.87% 9.41% 9.95% 10.49% 11.02% Year 1 698.7 2 749.7 3 787.9 4 828.2 5 870.8 6 915.7 7 881.5 12,486.5 Discount Factor Cumulative Discount Factor PV(Annual FCF) PV(Annual FCF) PV(continuing value) Core Operating Value Plus: Excess Cash Plus: PV(Other Income) Enterprise Value Less: Debt Less: Value of operating leases Less: Deferred Taxes Value of Equity Shares Outstanding Value per Share PV(Synergies) PV(Tax Shields from acq. Debt) Max Bid Price w/Tax Shield 0.9277 0.9277 648.2 0.9231 0.8564 642.1 0.9185 0.7866 619.8 0.9140 0.7190 595.5 4,086.9 6,656.6 10,743.5 0.0 0.0 10,743.5 2,900.0 511.2 0.0 7,332.3 168.70 43.46 11.89 1.00 56.36 (Max bid price: Compare to pre-bid market price) 0.9095 0.6539 569.4 0.9051 0.5919 542.0 0.9007 0.5331 469.9 WACC Growth 56.36 2.00% 7.5% 47.85 8.0% 47.67 8.5% 47.49 9.0% 47.32 9.5% 47.14 10.0% 46.97 2.50% 49.05 48.87 48.68 48.50 48.32 48.14 3.00% 50.37 50.18 49.99 49.80 49.61 49.42 3.50% 51.84 51.63 51.44 51.24 51.04 50.85 4.00% 53.48 53.27 53.06 52.85 52.65 52.44 4.50% 55.33 55.11 54.90 54.68 54.47 54.25 5.00% 57.47 57.24 57.01 56.79 56.56 56.34 Event Timeline from S-4 filed on Dec 22 2015 Date Feb 10 2015 Feb-15 Mar-15 April 15 2015 April 20 2015 Event Starwood BOD decides to spin-off its Vistana business into a separately traded company Starwood BOD initiates "out-reach" program with significant Starwood shareholders A large number of hedge funds had accumulated signigicant holdings of HOT stock. Starwood Chairman Bruce W. Duncan mets with CEO of a U.S. lodging cmpany ("Company A") Starwood BOD meets with Lazard to discuss underperformance relative to peers and long-term growth pros Starwood mangement, Lazard, and significant shareholders indicate that a combination with another company would benefit Starwood. The "Strategy" Committee is created April 20 2015 Starwood BOD sets meetings with Company B (Marriott) and Company C April 23 2015 Company B (Marriott) discontinues talks April 27 2015 Company E expresses interest in pursuing discussions for an acquisition April 29 2015 Starwood board announces exploration of strategic alternatives and retention of Lazard May 5 2015 Strategy Committee retains Citi to help explore strategic options May 6 2015 CEO of foreign lodgin company (Company D) and foreign investor with hotel investments (Company F) expressed interest in a potential transaction May 7 2015 Representative of foreign company (Company G) expressed interest in a potential transaction May 15 2015 Representative of foreign company (Company H) expressed interest in a potential transaction May/June 2015 The Special Committee, Lazard, & Citi review alternatives Jun-15 Company C discontinues talks Jul-15 Confidential information is shared with potential partners July 21 2015 Representative of US lodging company (Company J) expressed interest in a potential transaction July 22 2015 Company A makes an offer of $22.50/share + one-for-one share exchange July 30 2015 Company D withdraws interest July 31 2015 Starwood determines not to execute a confidentiality agreement with Company B (Marriott) August 12 2015 At the direction of Lazard, Starwood's BOD meets to review presentations. At the time of the meeting nine potential counterparties had been sent a draft confidentiality agreement. Companies C and H had not signed the agreement Companies A, B, D, E, G and I had signed Starwood also considers an opportunity to bid for foreign Company K August 13 2015 Starwood's BOD discusses the merits and risks of combinations with Companies D and E October 18 2015 Starwood makes an all-stock combination proposal to acquire company D October 19 2015 Starwood board receives an offer from Company E (70% stock, 30% cash at 10% premium) October 19 2016 Starwood BOD meets with Marriott's Chairman of the Board J.W. Marriott October 23 2015 Marriott proposes an all-stock acquisition October 27 2015 Wall Street Journal reports rumors of an acquisition interest in Starwood by foreign investors October 28 2015 Starwood announces the execution of the difinative agreement to effect the Vistana transaction October 29 2015 Company D expresses interest in reengaging Starwood November 3 2015Company F again makes a preliminary non-binding all cash offer November 5 2015Marriott's board meets to review proposed combination Starwood's board discusses reengaging Company D, reviews Copmany J's offer November 6 2015Starwood and Marriott hold discussions November 9 2015Starwood reviews Marriott's and Company E's proposals November 9 2015Starwood offers Marriott a counter proposal for all equity exchange at 0.95 Marriott shares for each Starwoo November 11 201 Marriott proposes 0.910 exchange ratio + $2/share cash November 14 201Company E revises offer at 1.120 share of combined company for each Starwood share plus $17.74 in cash Starwood BOD concludes that Marriott's offer is best long-run opportunity November 16 201Starwood Marriott merger is announced Offers Company D Copmany E Company F Company G Marriott $79/share all cash 70% stock, 30% cash @ 10% premium 20% premium all cash 82.50 - 86/share all cash 80.02/share h prospects ) arwood share n cash per share Daily % Return Market-Adjusted Returns Cumulative % Return Close % Return % Return % Return % Return % Return % Return % Return % Return % Return % Return H SP500 HOT MAR H HOT MAR H HOT MAR H 59.56 58.16 -0.0183 -0.0506 -0.0274 -0.0235 -0.0323 -0.0091 -0.0052 -0.0323 -0.0091 -0.0052 56.90 -0.0089 -0.0074 -0.0126 -0.0217 0.0015 -0.0037 -0.0128 -0.0308 -0.0128 -0.0180 57.69 0.0116 0.0101 0.0229 0.0139 -0.0015 0.0113 0.0023 -0.0323 -0.0015 -0.0157 58.90 0.0179 0.0133 0.0331 0.0210 -0.0046 0.0152 0.0031 -0.0369 0.0137 -0.0127 58.56 -0.0084 -0.0395 -0.0023 -0.0058 -0.0310 0.0061 0.0026 -0.0680 0.0198 -0.0100 58.02 -0.0081 -0.0076 -0.0104 -0.0092 0.0005 -0.0023 -0.0011 -0.0675 0.0175 -0.0112 57.75 -0.0026 -0.0020 -0.0063 -0.0047 0.0006 -0.0037 -0.0021 -0.0670 0.0138 -0.0132 57.15 -0.0058 -0.0020 -0.0110 -0.0104 0.0038 -0.0052 -0.0046 -0.0632 0.0086 -0.0178 56.34 -0.0092 -0.0100 -0.0061 -0.0142 -0.0008 0.0031 -0.0049 -0.0640 0.0118 -0.0227 56.08 0.0134 -0.0090 -0.0028 -0.0046 -0.0224 -0.0162 -0.0180 -0.0864 -0.0044 -0.0408 56.38 0.0015 0.0041 0.0057 0.0053 0.0026 0.0041 0.0038 -0.0838 -0.0003 -0.0370 56.59 0.0047 0.0102 -0.0008 0.0037 0.0054 -0.0055 -0.0010 -0.0784 -0.0058 -0.0380 58.14 0.0153 0.0250 0.0291 0.0274 0.0098 0.0138 0.0121 -0.0686 0.0080 -0.0259 58.02 -0.0055 -0.0097 0.0004 -0.0021 -0.0042 0.0059 0.0034 -0.0728 0.0139 -0.0224 58.05 0.0026 0.0091 0.0116 0.0005 0.0065 0.0090 -0.0021 -0.0663 0.0229 -0.0245 57.73 -0.0134 -0.0169 -0.0102 -0.0055 -0.0035 0.0032 0.0079 -0.0697 0.0261 -0.0166 57.10 -0.0135 -0.0192 -0.0218 -0.0109 -0.0057 -0.0083 0.0026 -0.0754 0.0178 -0.0140 57.10 0.0095 0.0132 0.0027 0.0000 0.0037 -0.0068 -0.0095 -0.0717 0.0110 -0.0236 56.26 -0.0130 -0.0219 -0.0338 -0.0147 -0.0089 -0.0209 -0.0017 -0.0806 -0.0098 -0.0253 55.79 0.0130 0.0001 0.0040 -0.0084 -0.0128 -0.0089 -0.0213 -0.0935 -0.0188 -0.0466 57.45 0.0144 0.0318 0.0245 0.0298 0.0174 0.0100 0.0153 -0.0761 -0.0087 -0.0313 56.62 -0.0042 -0.0078 -0.0090 -0.0144 -0.0037 -0.0048 -0.0103 -0.0797 -0.0136 -0.0416 57.11 0.0103 0.0123 -0.0032 0.0087 0.0021 -0.0135 -0.0016 -0.0777 -0.0270 -0.0432 56.63 -0.0034 -0.0394 -0.0196 -0.0084 -0.0360 -0.0161 -0.0050 -0.1137 -0.0432 -0.0482 57.04 -0.0042 -0.0060 -0.0112 0.0072 -0.0018 -0.0069 0.0115 -0.1154 -0.0501 -0.0367 59.83 0.0107 0.0660 0.0523 0.0489 0.0553 0.0416 0.0382 -0.0601 -0.0085 0.0015 59.77 0.0000 0.0043 -0.0027 -0.0010 0.0044 -0.0027 -0.0010 -0.0557 -0.0111 0.0006 59.65 0.0096 0.0212 0.0260 -0.0020 0.0116 0.0163 -0.0117 -0.0441 0.0052 -0.0111 59.51 0.0041 0.0086 0.0048 -0.0023 0.0045 0.0007 -0.0064 -0.0396 0.0059 -0.0175 59.53 0.0016 0.0266 0.0238 0.0003 0.0250 0.0222 -0.0013 -0.0146 0.0281 -0.0188 58.79 -0.0003 -0.0134 0.0020 -0.0124 -0.0131 0.0023 -0.0121 -0.0277 0.0304 -0.0309 58.80 -0.0011 -0.0013 0.0203 0.0002 -0.0002 0.0213 0.0012 -0.0279 0.0517 -0.0297 59.27 0.0061 0.0101 -0.0012 0.0080 0.0039 -0.0073 0.0019 -0.0239 0.0444 -0.0278 59.59 -0.0003 -0.0101 -0.0006 0.0054 -0.0098 -0.0003 0.0057 -0.0337 0.0441 -0.0221 60.26 0.0028 0.0045 -0.0084 0.0112 0.0018 -0.0112 0.0085 -0.0320 0.0329 -0.0136 59.88 -0.0008 0.0051 0.0013 -0.0063 0.0059 0.0021 -0.0055 -0.0260 0.0350 -0.0191 60.51 -0.0015 -0.0027 0.0104 0.0105 -0.0013 0.0119 0.0120 -0.0273 0.0469 -0.0072 60.54 -0.0030 0.0041 -0.0014 0.0005 0.0071 0.0015 0.0035 -0.0202 0.0484 -0.0037 61.76 0.0061 0.0315 0.0208 0.0202 0.0254 0.0147 0.0140 0.0051 0.0631 0.0103 61.26 -0.0045 -0.0064 -0.0108 -0.0081 -0.0019 -0.0063 -0.0036 0.0033 0.0568 0.0068 60.77 -0.0044 -0.0169 -0.0091 -0.0080 -0.0125 -0.0047 -0.0036 -0.0092 0.0521 0.0032 60.28 0.0012 -0.0023 -0.0030 -0.0081 -0.0035 -0.0042 -0.0093 -0.0128 0.0479 -0.0061 58.89 -0.0142 -0.0007 -0.0166 -0.0231 0.0134 -0.0025 -0.0089 0.0007 0.0455 -0.0150 59.69 0.0039 -0.0007 0.0118 0.0136 -0.0047 0.0078 0.0096 -0.0040 0.0533 -0.0053 58.40 -0.0170 -0.0164 -0.0148 -0.0216 0.0006 0.0022 -0.0047 -0.0034 0.0555 -0.0100 58.70 -0.0019 0.0124 -0.0023 0.0051 0.0143 -0.0004 0.0071 0.0108 0.0551 -0.0029 59.13 0.0126 0.0113 0.0213 0.0073 -0.0013 0.0087 -0.0053 0.0096 0.0638 -0.0082 58.71 -0.0061 -0.0053 -0.0087 -0.0071 0.0008 -0.0026 -0.0010 0.0104 0.0612 -0.0092 58.69 0.0135 0.0092 0.0172 -0.0003 -0.0044 0.0036 -0.0139 0.0060 0.0648 -0.0231 58.26 -0.0033 0.0060 -0.0126 -0.0073 0.0093 -0.0093 -0.0040 0.0153 0.0556 -0.0271 58.40 0.0122 0.0140 0.0096 0.0024 0.0019 -0.0026 -0.0098 0.0172 0.0530 -0.0369 59.68 -0.0049 0.0042 0.0130 0.0219 0.0091 0.0178 0.0268 0.0263 0.0708 -0.0101 59.42 0.0090 0.0107 -0.0032 -0.0044 0.0016 -0.0122 -0.0134 0.0279 0.0586 -0.0235 58.94 -0.0017 0.0062 0.0027 -0.0081 0.0079 0.0045 -0.0063 0.0358 0.0631 -0.0298 Cumulative Market-Adjusted Returns 0.1 0 Date 42010 42013 42018 42024 42027 42032 42037 42040 42045 42048 42054 42059 42062 42067 42072 42075 42080 42083 42088 42093 42096 42102 42107 42110 42115 42118 42123 42128 42131 42136 42139 42144 42150 42153 42158 42163 42166 42171 Close Da

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey Of Economics, Principles, Applications, And Tools

Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez

5th Edition

0132556073, 978-0132556071

More Books

Students also viewed these Finance questions