(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?