(Defining capital structure weights) Templeton Extended Care Facilites, Inc. is considering the acquisition of a chain of cemeteries owned by the Rosewood Corporation for $400 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 Rosewood

Corporation has no debt financing, but Templeton plans to borrow $100 million and invest only $300 million in equity in the acquisition. What weights should Templeton use for debt and equity in

computing the WACC for this acquisition?

The appropriate weight of debt, wy, is [

%. (Round to one decimal place.)