(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:($ Millions)Book ValueMarket ValueShort-term debt$2,653$2,653Long-term debtCommon equity4,3884,3888,03835,741Total capital$15,079$42,782(Click on the icon O in order to copy its contents into a spreadsheet.)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.)

In the given question we need to calculate the Weights to be used to calculate WACC. While…

(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: ($ Millions) Book Value Market Value $2,653 $2,653 4,388 35,741 Short-term debt Long-term debt Common equity 4,388 8,038 Total capital $15,079 $42,782 (Click on the icon D in order to copy its contents into a spreadsheet.) What weights should Emerson use when computing the firm's weighted average cost of capital? The appropriate weight of debt, wa, is %. (Round to one decimal place.)

(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: ($ Millions) Book Value Market Value $2,653 $2,653 4,388 35,741 Short-term debt Long-term debt Common equity 4,388 8,038 Total capital $15,079 $42,782 (Click on the icon D in order to copy its contents into a spreadsheet.) What weights should Emerson use when computing the firm's weighted average cost of capital? The appropriate weight of debt, wa, is %. (Round to one decimal place.)

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 1eM

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(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: ($ Millions) Book Value Market ValueShort-term debt $2,553 $2,553Long-term debt $4,289 $4,289Common equity $8,081 $35,690Total capital $14,923 $42,532 A). The appropriate weight of debt, wd, is %. (Round to one decimal place.) B). The appropriate weight of common equity, wcs, is %. (Round to one decimal place.)
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