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.)

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