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(Defining capital structure weights) In August 2015 the capital structure of the Emerson Electric Corporation (EMR) (measured in book and market values) was as follows:
(Defining capital structure weights) In August 2015 the capital structure of the Emerson Electric Corporation (EMR) (measured in book and market values) was as follows:
($ Millions) | Book Value | Market Value | |||
---|---|---|---|---|---|
Short-term debt | $2,580 | $2,580 | |||
Long-term debt | 4,322 | 4,322 | |||
Common equity | 8,044 | 35,698 | |||
Total capital | $14,946 | $42,600 |
What weights should Emerson use when computing the firm's weighted average cost of capital?
A. The appropriate weight of debt, wd, is ? (Round to one decimal place.)
B. The appropriate weight of common equity, wcs, is ? (round to one decimal place)
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