# FIN 370 Uop Course Tutorial/ShopTutorial

## FIN 370 Uop Course Tutorial/ShopTutorial

Q-1 (Define captital structure weights

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FIN 370 Week 4 LAB (Promotion work)

Q-1 (Define captital structure weights)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, Templetons management has determined that they will be able to borrow the majority of the money needed to buy a business. The current owners have no debt financing but Templeton plans to borrow \$300 million and invest only \$ 100 million in equity in the acquisition. What weights should templeton use in computing the WACC for this acquisition?

a) the appropriate wd weight is _% (round to one decimal)

b) the appropriate wcs weight is_%

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Individual or compound cost of capital

For more course tutorials visit
www.shoptutorial.com

FIN 370 Week 4 LAB (Promotion work)

Q-1 (Define captital structure weights)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, Templetons management has determined that they will be able to borrow the majority of the money needed to buy a business. The current owners have no debt financing but Templeton plans to borrow \$300 million and invest only \$ 100 million in equity in the acquisition. What weights should templeton use in computing the WACC for this acquisition?

a) the appropriate wd weight is _% (round to one decimal)

b) the appropriate wcs weight is_%
Q-2 (Individual or compound cost of capital) Compute the cost of capital for the firm for the following:
a.A bond that has \$1,000 par value (face value) and a coupon onterest rate of 11.2 %. Interest payment are \$56.00 and are paid semiannually. The bonds have acurrent market value of...