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In August 2015 the capital structure of the Emerson Electric Corporation (EMR) (measured in book and market values) was as follows: ($ Millions) Book Value
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 | $2,479 | $2,479 | |||
| Long-term debt | 4,324 | 4,324 | |||
| Common equity | 8,180 | 35,640 | |||
| Total capital | $14,983 | $42,443 | |||
What weights should Emerson use when computing the firm's weighted average cost of capital?
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