(Defining capital structure weights

(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:

(Thousands of dollars) Book ValuesMarket Values
Short-term debt  $1,172,000  1,172,000
Long-term debt   11,917,000   11,917,000
Common equity 9,163,00026,241,000
Total capital$22,252,000$39,330,000

What weights should Emerson use when computing the firm’s weighted average cost of capital?

The appropriate weight of debt,

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