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Marriott International, Inc., and Hyatt Hotels Corporation we two major owners and managers of lodging and resort properties in the United States. Abstracted income statement

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Marriott International, Inc., and Hyatt Hotels Corporation we two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information companies is as follows for a recent year (in milions) Marriott Hyatt Operating profit before other expenses and interest 5677.00 $39.00 1 Other Income expenses) 54.00 118.00 Interest pense (180.00) (54.00 Income before income taxes 5551.00 $10500 Income tax expense 3700 7 Net income $455.00 $66.00 Balance sheet information is as follows: Marriott Total liabilities $7,398.00 Hyatt $2,125.00 5,118.00 $7,243.00 1,585.00 Total stockholders' equity Total liabilities and stockholders' equity $8,983.00 The average liabilities, average stockholders' equity, and average total assets are as follows: Average total liabilities Average total stockholders equity Average total assets Marriott $7.095 1.364 8.458 Hyatt $2.132 5.087 7.100 Times interesteaned D 1. Determine the following ratios for both companiet A Resumon B. Return on teholdera Ratio fo t o fockholderuty Round ratios and percentages to one oecimallace 2. Based on the information in (1), analyze and compare the two companies' Boney and profitability 1. Determine the following ratios for both companies: Round ratios and percentages to one decimal place Marriott Hyatt A Return on Total Assets B. Return on stockholders' equity C. Times interest earned D. Ratio of liabilities to stockholders' equity 2. Based on the information in (1), and analysis, which of the following statement is incorrect with regard to two companies' solvency and profitability O Marriott has a higher return on total assets and a higher return on stockholders' equity compared to Hyatt Marriott's weak earnings and low debt levels are affecting the company's ability to earn returns for stockholders Hyatt is not covering the interest expense on its debt as well as Marriott, which is negatively affecting the return on total assets. Hyatt's weak earnings and low debt levels are affecting the company's ability to earn returns for stockholders

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