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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:
Book Value Market Value
Short-term debt | $2,504 | $2,504 | |||
Long-term debt | 4,382 | 4,382 | |||
Common equity | 8,113 | 35,703 | |||
Total capital | $14,999 | $42,589 |
What weights should Emerson use when computing the firm's weighted average cost of capital?
The appropriate weight of debt, is _____ %. (Round to one decimal place.)
The appropriate weight of common equity, is________%. (Round to one decimal place.)
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