Templeton Extended Care Facilities Inc is considering theacquisition of a chain of cemetaries for $360 million. since theprimary asset of this business is real estate Templetonsmanagement has determined that they will be able to borrow themajority of the money needed to buy the business. The currentowners have no debt financing but Templeton plans to borrow $260million and invest only $100 million in equity in the acquisition.What weights should Templeton use in computing the WACC for thisacquisition? Round to one decimal place.
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