• alculate cost of capital (WACC) for Marriott as a whole:

Hint: a. Calculate the unlevered asset beta from the equity beta and market leverage.

Find the levered beta using the target debt ratio. Calculate cost of equity and the WACC.

• Calculate cost of capital (WACC) for Lodging:

• Calculate cost of capital (WACC) for Restaurants:

• Calculate cost of capital (WACC) for Contract Services. Hint, No comparable asset beta is given in the case.