Considering the acquisition of a chain of cemeteries

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Templeton extended care facilities is considering the acquisition of a chain of cemeteries for $400 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 $300 million and invest only $100 million in equity of the acquisition what weight should Templeton use in computing the WACC for this acquisition.

Reference no: EM13727131

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