Mariott

Step 1
Step 1

Levered Beta
Actual D/V
D/E
Tc
beta Asset

1.11
0.41
0.69
34%
0.76

Step 2

target d/v
d/e
beta e

0.6
1.5
1.51

Step 3

Re

Average Beta A
Step 2

New Beta Equity

New D/E
2.85

Step 3

Re

20.20%
Step 4

Rd

10.25%

Lodging
levered
Beta E
D/V
0.76
0.14
1.35
0.79
0.89
0.69
1.36
0.65

8.95%
1.30%

19.89%
Step 4

Step 5

WACC

12.14%

Rd

10.05%
8.95%
1.10%

Step 5

WACC

10.08%

Restaurant
D/E
0.16
3.76
2.23
1.86

Average Beta A

unlevered
Beta A
0.69
0.39
0.36
0.61

Step 1
Beta E
D/V
D/E
Beta A
1.45
0.04
0.04
1.41
1.45
0.1
0.11
1.35
0.57
0.06
0.06
0.55
0.76
0.01
0.01
0.75
0.94
0.23
0.30
0.79
1.32
0.21
0.27
1.12

0.51
1.47

Average Beta A
Step 2

New Beta Equity

New D/E
0.72

Step 3

Re
19.65%

Step 4

Rd

10.52%
8.72%
1.80%

Step 5

WACC

14.31%

1.00
1.47

Marriot Beta Asset

Lodging BA
Restaurant Beta A
Contract Beta A

Contract
Beta
Assets
0.76
6355.6
0.51
3975.4
1.00
1105.1
1.34
1275.1

Weight
0.625496
0.173878
0.200626