Capital of the emerson electric corporation

Assignment Help Finance Basics
Reference no: EM131134357

(Defining Capital Structure Weights) In August of 2009 the capital of the Emerson Electric Corporation (EMR) (measured in book and market values) appeared as follows:

(Thousands of dollars) Book Values Market Values

Short-term debt $1,211,000 $1,211,000

Long-term debt 11,917,000 11,917,000

Common equity 9,035,000 26,111,000

Total capital $22,163,000 39,239,000

What weights should Emerson use when computing the firmAc€?cs weighted average cost of capital?

The appropriate weight of debt, (W)d, is ____ % (round to one decimal place)

The appropriate weight of common equity, (W)cs, is ____ % (round to one decimal place)

Reference no: EM131134357

Questions Cloud

Why does the steady state occur where they cross : Figure 3-4 is a basic illustration of the Solow growth model. Interpret it, being careful to explain the meaning of the saving and investment requirement lines. Why does the steady state occur where they cross?
Digby plans to spend an additional : Digby's turnover rate for this year is 6.31%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Digby plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base..
Compose a thesis about a dc comics super hero : Compose a persuasive thesis about a DC Comics super-hero (not a villain)- The thesis must connect an aspect (only one) of the character.
What about the decrease in employment during the 2000s : What event can be used to explain the increase in the employment of information technology workers during the 1990s? What about the decrease in employment during the 2000s?
Capital of the emerson electric corporation : (Defining Capital Structure Weights) In August of 2009 the capital of the Emerson Electric Corporation (EMR) (measured in book and market values) appeared as follows:
Does the investment ratio rise during transition : Chart the time path of the adjustment to the new steady state. Does the investment ratio rise during transition? If so, is this effect temporary?
What are capital''s and labor''s shares of income : At what rate is per capita output growing at the steady state? At what rate is total output growing? What if total factor productivity is increasing at a rate of 2 percent per year ( g .02)?
Discuss the adjustment process of the economy : Discuss the adjustment process of the economy, and using Figure 3-5 , show what happens to growth in the short run and in the long run.
The expected return and probability distribution : 1.Compute the expected risk and returns of the portfolio with 50% investment in asset X 2. Calculate the portfolio risk assuming that the correlation of the two assets X and Y are: 1.-1 2.0 3.+1 3.Draw a portfolio opportunity set curve. 4.What are..

Reviews

Write a Review

Finance Basics Questions & Answers

  Rha company owns 30 percent of the stock in aju

rha company owns 30 percent of the stock in aju corporation and receives dividends of 20000 in a given year. assume

  What is its tie ratio

The H.R. Pickett Corp. has $500,000 of debt outstanding, and it pays an annual interest rate of 10%. Its annual sales are $2 million, its average tax rate is 30%, and its net profit margin is 5%. What is its TIE ratio?

  Write a one page summary about the article barings bank plc

Write a one page summary about the article Barings Bank PLC by Leeson's Lessons.

  What would the weights used in the calculations

What would the weights used in the calculations of Accessory WACC for comon stock and preferred stock and bonds, respectively?

  How can understanding stages of group development and group

1. how can understanding stages of group development and group properties help employees in a work group function more

  The company pays a constant annual dividend and has a

the common stock of the garden of eden is selling for 42 a share. the company pays a constant annual dividend and has

  Negotiating payment contracts

Explain at least three important aspects that you as a medical business professional would need to understand when negotiating payment contracts either between a provider and the MCO, or negotiating between the MCO and Medicare.

  Determining the inventory conversion period at various

determining the inventory conversion period at various parameters.the garcia industries balance sheet and income

  What is a cash budget, and how can this statement be used

What is a cash budget, and how can this statement be used to help reduce the amount of cash that a firm needs to carry?

  What evidence exists on whether entrepreneurs think

What evidence exists on whether entrepreneurs think about and/or develop exit strategies?

  Explain why neutrality is such an important quality of

financial reporting has been likened to cartographyinformation cannot be neutral-it cannot therefore be reliable-if it

  Discuss the overall purpose people have for investing

Discuss the overall purpose people have for investing. Define investment. Discuss why you would expect the saving-borrowing pattern to differ by occupation for example

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd