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Templeton Extended Care Facilities Ltd is considering the acquisition of a chain of cemeteries for $390 million. Since the primary asset of this business is

Templeton Extended Care Facilities Ltd is considering the acquisition of a chain of cemeteries for $390 million. Since the primary asset of this business is realestate, 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 no debt financing but Templeton plans to borrow $290 million and invest only $100 million in equity in the acquisition. What weights should Templeton use in computing the WACC for thisacquisition?

The appropriate weight ofdebt is

The appropriate weight ofequity is

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