1- In August the capital structure of the Emerson Electronic corp ( EMR) ( measure in book and market values) appeared as follows.
In August the capital structure of the Emerson Electronic corp ( EMR) ( measure in book and market values) appeared as follows.
(Thousand of dollars ) Book Value Market values
Short-term debt 1,152,000 1,152,000
Long-term debt 11,967,000 11,967,000
Common equity 9,017,000 26,220,000
Total Capital 22,136,000 39,339,000
What weight should Emerson use when computing the firm weighted average cost of capital?
The appropriate weight of debt, Wb is …..% ( round one decimal)
The appropriate weight of common equity Wcs is ….% ( round to one decimal)
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