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Overview
The Marriott Corporation engages in three major business lines: lodging, contract services, and restaurants. Based upon the financial strategy outlined by senior management for the coming year, it is necessary to re-evaluate the cost of capital (WACC) for the purpose of investing in a new project. While maintaining the strategy for the firm, which is to manage rather than own hotel assets, invest in projects that increase shareholder value, optimize the use of debt in the capital structure, and repurchase of undervalued shares, it has been decided for the scope of this discourse that project decisions should be primarily based on increasing shareholder value. After evaluating the various components of the cost of capital and its divisional effects, we have determined that a firm-wide WACC should be used for all investment decisions.

Cost of Equity and Beta Considerations
We thought further research was needed to confirm the given beta. We regressed Marriott’s......

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Approximate Word Count: 1112
Approximate Pages: 5 (250 words per double-spaced page)

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