Ch 14: Assignment - Capital Structure and Leverage 0 x ack to Assignment Attempts Average / 1 9. Problem 14.08 (Hamada Equation) ebook Problem Walk-Through Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 30% debt and 70% equity. however, the CEO believes that the firm should use more debt. The risk-free rate, for, is 5%, the market risk premium, RP, is 5%, and the firm's tax rate is 40%. Currently, SSC's cost of equity is 13%, which is determined by the CAPM. What would be SSC's estimated cost of equity if it changed ice capital structure to 50% debt and 50% equity? Do not round intermediate calculations. Round your answer to two decimal places. 96 Grade It Now Save & Continue Continue without swing MacBook Air i FF 4 96 5 & 7 ) 0 6 8 9 3 o U E R Y G L J H F K J D B V N M