Marriott has three divisions (lodging, restaurants and services) and wants to use a different hurdle rate for each business due to the different risks of the businesses. The CFO provides you the following data about Marriott and its divisions Firm Equity Beta DD+E)Revenues illions Industry Marriott 0.97 0.41 6.52 Lodging Lodging Lodging Lodging Hilton Holiday La Quinta Ramada 0.88 1.46 0.38 0.95 0.14 0.79 0.69 0.65 0.77 1.66 0.17 0.75 Church's Fried Chicken Collins Foods Frish's Restaurants Luby's Cafeterias Mc Donalds Wendy's 0.75 0.60 0.13 0.64 1.00 1.08 0.04 0.10 0.06 0.01 0.23 0.21 0.39 0.57 0.14 0.23 4.89 1.05 Marriotts' Identif iable Assets SMillions Weight Lodging Restaurants Service $2,777.40 $567.60 $1,237.70 $ 4,582.70 0.61 0.12 0.27 1.00 Marriott uses the following assumptions in calculating cost of capital Riskless Rate Market Risk Premium Tax Rate 8.72% 7.43% 34.00% Marriott expects to operate with a D/E ratio of 1.5 and the debt cost of capital is expected to be 10.02%. Marriott's equity market capitalization is approximately $3.60 billion. a. What is the asset beta of the services division? b. Calculate the asset cost of capital for Marriott and each of its three divisions. c. Calculate the WACC for Marriott as a whole d. If you wanted to calculate the WACC for each of the three divisions, how would you go about it? Describe the process. There is no need to grind through the numbers