Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i got my answers wrong, i need help Analyze and compare Marriott and Hyatt Marriott International, Inc. (MAR) and Hyatt Hotels Corporation (H) are two

i got my answers wrong, i need help
image text in transcribed
image text in transcribed
Analyze and compare Marriott and Hyatt Marriott International, Inc. (MAR) and Hyatt Hotels Corporation (H) are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place.) 2. Which of the following statements are correct? 1. Hyatt has a higher return on total assets, but Marriott has a higher return on stockholders' equity. 2. Hyatt has less leverage than Marriott. 3. The times interest earned ratio shows that Hyatt covers its interest charges better than Marriott; however, both companies do not have sufficient coverage. 4. Marriott's small equity value is due to its stock buyback program, which appears as treasury stock on its balance sheet. This amount significantly reduces Marriott's equity, contributing to the higher return on equity

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions