Project #4751 - Finance

Problem 1.

(Defining capital structure weights) Templiton Extended Care Facilities, Inc. is considering the acquisition of a chain of a chain of cemeteries for $380 million. Since the primary asset of this business 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 $270 million and invest only $110 million in equity in the acquistion. What weights should Templeton use in computing the WACC for acquistion?

 

The appropriate W d weight is ____ % (round to one decimal place) show all work

Subject Mathematics
Due By (Pacific Time) 04/21/2013 11:59 pm
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