Question
(Defining capital structure weights)In August of 2009 the capital structure 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 structure of the Emerson Electric Corporation (EMR) (measured in book and market values) appeared as follows:
(Thousand of dollars) Book Values Market Values Short-term debt $1,258,000 $1,258,000 Long-term debt $11,942,000 $11,942,000 Common equity $9,039,000 $26,132,000 Total capital $22,239,000 $39,332,000
What weights should Emerson use when computing the firm's weighted average cost of capital?
The appropriate weight of debt, wd, is ___%. (Round to one decimal place.)
The appropriate weight of common equity, wcs, is ___%. (Round to one decimal place.)
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