2) What is the weighted average cost of capital (WACC) for Marriott Corporation, under target capital structure? Hints for question 2 a) Beta of Marriott is given in the case. This is a levered beta. By using actual L (in 1987), compute b) By using the target capital structure (L), compute the Beta levered. Beta levered = (1/(1-L))*Beta c) Using CAPM, calculate cost of equity. All inputs of CAPM are as in question 1, except beta. Use the d) Compute the WACC using: WACCr-T)+ wr. unlevered beta. Beta unlevered - (E/V)* Beta levered -(1-L)*Beta levered unlevered beta you calculated under target capital structure (in part b) here. - WaldI