Templeton extended care facilities, inc. is considering the acquistion of chain of cemeteries for 350 million. Since the primary asset of this business is real state, templeton`s management has determined that they will be able to borrow the majority of the money needed to buy the business. The current owners have no debt
Financing but templeton plans to borrow 260 million and invest 90 million in equity acquisition. What weights should templeton use in computing the wacc for this acquisition.