Originally Posted by
mscece
Templeton extended care facilities is considering the acquisition of a chain of cemetaries for $40 million. Since the primary asset of this business is real estate, Templetons management has determined that they wil be able to borrow the majority of the money needed to buy the businss. The current owners have no debt financing but Templeton plans to borrow $340 million and invest only $110 million in equity in the acquistion. What weights should Templeton use in computing the WACC for this acquisition? The appropriate w/cs weight is