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Project: Marriott Corp Marriot needs to estimate its overall as well as divisional cost of capital using CAPM. Please provide a detailed analysis and relevant

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Project: Marriott Corp

Marriot needs to estimate its overall as well as divisional cost of capital using CAPM. Please provide a detailed analysis and relevant explanations of the following issues:

1. Are four components of Marriot's financial strategy consistent with its growth objectives?

2. What is weighted average cost of capital of Marriott? Explain your estimation of risk free rate, market risk premium and cost of debt.

3. What would happen to the company if Marriott used a single hurdle rate for all its projects?

4. What is the cost of capital of Marriott's lodging division?

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