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30 12 months US maturity federal government desire fees at the end of April 1988 are already used for logistics division given that Marriot has a long background and It is just a significant Company. For the opposite two divisions, the administration utilizes short term financial debt as price of credit card debt so ten years maturity government fascination charges have been used.
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The calculation of WACC calls for calculating first Source of all the cost of equity and value of debt. To be able to estimate the cost of fairness for each on the 3 divisions, the chance absolutely free fee used for the lodging division is 8.
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