Case | HBS Case Collection | March 1989 (Revised April 1998)

Marriott Corporation: The Cost of Capital (Abridged)

by Richard S. Ruback

Abstract

Gives students the opportunity to explore how a company uses the Capital Asset Pricing Model (CAPM) to compute the cost of capital for each of its divisions. The use of Weighted Average Cost of Capital (WACC) formula and the mechanics of applying it are stressed.

Keywords: Cost of Capital; Mathematical Methods;

Citation:

Ruback, Richard S. "Marriott Corporation: The Cost of Capital (Abridged)." Harvard Business School Case 289-047, March 1989. (Revised April 1998.)