Question
(Defining Capital Structure Weights) In August of 2009 the capital of the Emerson Electric Corporation (EMR) (measured in book and market values) appeared as follows:
(Defining Capital Structure Weights) In August of 2009 the capital of the Emerson Electric Corporation (EMR) (measured in book and market values) appeared as follows:
(Thousands of dollars) Book Values Market Values
Short-term debt $1,200,000 $1,200,000
Long-term debt 11,846,000 11,846,000
Common equity 9,020,000 26,109,000
Total capital $22,066,000 39,155,000
What weights should Emerson use when computing the firms weighted average cost of capital?
The appropriate weight of debt, (W)d, is ____ % (round to one decimal place)
The appropriate weight of common equity, (W)cs, is ____ % (round to one decimal place)
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