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Executive Summary
The Marriot Corporation began in 1927 with J. Willard Marriott's root beer stand. In the last 60 years, the Marriot Corporation grew into one of the leading lodging, and food service companies in the United States, with profits of $223 million and sales of $6.5 billion in 1987. The company consists of three divisions; lodging, restaurants and contract services that generate 41, 13, and 46% of sales, respectively. The company's strategy is to be a premier growth company, to be a preferred employer, provider and the most profitable company.
The cost of capital of the Marriott Corporation and its three divisions must be evaluated to decide which investment projects will be selected for the upcoming year. This requires calculating the risk of each division based on the comparable companies in the market. Once the cost of capital and the expected return is determined, the divisions can be evaluated for any change in their capital structure.......

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Approximate Word Count: 2742
Approximate Pages: 11 (250 words per double-spaced page)

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