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?
Fig: 1