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What weight should Templeton use in computing the WACC for this acquisition?
Templeton Extended Care Facilities , Inc is considering the acquisition of a chain of cemeteried for $420 million. Since the primary asset of this business is real estate. The current owner have no debt financing but Templeton plans to borrow $320 million and invest $100 million in equity. What weight should Templeton use in computing the WACC for this acquisition? Round to one decimal place.
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