Question
(Defining capital structure weights) Templeton Extended Care Facilities, Inc. is considering the acquisition of a chain of cemeteries owned by the Rosewood corporation for $440
(Defining capital structure weights) Templeton Extended Care Facilities, Inc. is considering the acquisition of a chain of cemeteries owned by the Rosewood corporation for $440 million. Since the primary asset of this business is real estate, Templetons 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 $120 million and invest only $320 million in equity in the acquistion. What weights should Templeton use for debt and equity in computing the WACC for this acquisition?
The approriate weight of debt is _%. (Round to one decimal place.)
The appropriate weight of common equity is _% (Round to one decimal place)
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