Question

Go through this link and answer the given questions :

https://www.slideshare.net/TurumbayevRas sul/marriott-corporation-cost-of-capital

Questions:

What is Marriott's target debt-to-value ratio (i.e. what is their target Debt/(Debt+Equity))?

What are the methods to determine the cost of equity for firms?

What are the methods to determine the cost of debt for firms?

What would happen if Marriott used a single WACC as the discount rate for all lines of business?

If Marriott chose to eliminate all debt from their capital structure, would the equity beta increase or

decrease?

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