FIN370 WK2 MyFinanceLab: 14-1 Templeton Extended Care Facilities, Inc. 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 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 borro $300 million and invest only $100 million in equity in the acquisition. What weights should Templeton use in computing WACC for the acquisition? The appropriate wd weight is __%. (Round to one decimal place)
Weight of Debt (wd) = 76.74%
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