Computing the firm weighted average cost of capital

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(Defining capital structure weights) In August of 2015 the capital structure of the Jefferson Corporation (measured in book and market values) appeared as follows: (Thousands of dollars) Book Values Market Values

Short-term debt $ 1,221,000 $ 1,221,000

Long-term debt 11,927,000 11,927,000

Common equity 9,113,000 26,170,000

Total capital $22,261,000 $39,318,000

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

Reference no: EM131925834

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