Templeton extended care facility inc is considering the acquisition
Templeton extended care facility inc is considering the acquisition.
Templeton Extended Care Facility Inc is considering the acquisition of a chain of cemeteries for $380 million. Since the primary asset of this building 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 current owners have no debt financing but Templeton plans to borrow $300 million and invest only $80 million in equity in the acquisition. What weights should Templeton use in computing the WACC in this acquisition?
w
The appropriate d weight for this is ____ % (round to nearest decimal
Templeton extended care facility inc is considering the acquisition