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(Defining capital structure weights) Templeton Extended Care Facilities, Inc. is considering the acquisition of a chain of cemeteries owned by the Rosewood Corporation for $370
(Defining capital structure weights) Templeton Extended Care Facilities, Inc. is considering the acquisition of a chain of cemeteries owned by the Rosewood Corporation for $370 million. Since the primary asset of this business is real estate, Templeton's management has determined that 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 $270 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, wd, is %. (Round to one decimal place.) The appropriate weight of common equity, wcs, is %. (Round to one decimal place.)
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