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Apple Computer includes very little debt in its capital sturcture as compared to Mariott Internatiol (hotel chain). ...
Apple produces computers, which require future servicing. Its customers will find it much more difficult to have their cars repaired if Apple goes out of business and no longer produces spare parts. Thus the more sophisticated customers will not be willing to pay as much for Apple computers and, in some cases, will avoid purchasing from it altogether when the firm is in financial difficulty. However, Mariott International is quite different from Apple. ... As a result, it will have a lower indirect bankruptcy costs than Apple, and therefore, has a higher debt ratio than Apple. ... Customers of Apple computer may doubt the quality of these computers, and are reluctant to pay as much as other computers when Apple Computers.
Approximate Word count = 592
Approximate Pages = 2.4
(250 words per page double spaced)
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