Question: (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.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
