Defining capital structure weights) Temple ton Extended Care Facilities, Inc. is considering the acquisition of a chain of cemeteries for $440 million. Since the primary asset of this business is real estate, Temple ton'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 Temple ton plans to borrow $350 million and invest only $90 million in equity in the acquisition. What weights should Temple ton use in computing the WACC for this acquisition? (Round to one decimal place.)
Defining capital structure weights) Temple ton Extended Care Facilities, Inc. is considering the acquisition of a chain of cemeteries for $440 million. Since the primary asset of this business is real estate, Temple ton's management has determined that they will be able to borrow the majority of...