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Free finance homework help
Templeton extended care facilities; inc. is considering the acquisition of a chain of cemeteries for $390 million. Since the primary asset of this business is real estate, 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 not debt financing but Templeton plans to borrow $300 million and invest only $90 million in equity in the acquisition. What weights should Templeton use in computing the WACC for this acquisition?
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