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FIN 670: Case 1 Marriot Cost of Capital The primary objective of this case is to estimate and analyze the cost of capital for a firm and its...
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The primary objective of this case is to estimate and analyze the cost of capital for a firm and its
non-publicly traded divisions with differing risk characteristics.
The following is a list of questions that may help you analyze the case, but you don't have to
limit your analysis to them. Assume a marginal tax rate of 42%. For purposes of your analysis, use
arithmetic instead of geometric averages where averages are necessary. For purposes of your
analysis, use the long-term treasury rates as the benchmark for estimating the cost of debt, and if you
wish, you can ignore the fact that some of the debt is floating rate.
- Attachment 1
- Attachment 2
