(See Steps) (Defining capital structure weights) In August of 2015 the capital structure of the Jefferson Corporation (measured in book and market values)
Question: (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?
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