Templeton Extended Care Facilities Inc, is considering the acauision of a chain of cemeteries for $450 million. Since the primary asset of the business is real estate, Templeton 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 $360 million and invest only $90 million in equity in the acquisition. What weights should Templeton use in computing the WACC for this acquisition? The approximate w/d weigh is ?% Round to one decimal place.

Question

Templeton Extended Care Facilities Inc, is considering the acauision of  a chain of cemeteries for $450 million. Since the primary asset of the business is real estate, Templeton 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 $360 million and invest only $90 million in equity in the acquisition. What weights should Templeton use in computing the WACC for this acquisition?    The approximate w/d weigh is  ?%    Round to one decimal place.