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(Defining capital structure weights)In August of 2009 the capital structure

Question : (Defining capital structure weights)In August of 2009 the capital structure : 9230

(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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