GEMINUIAP Ch. 13 Assignment Score: 11.11% men: Home Save Submit Assignment for Grading Question 1 of 9 Check My Work (1 remaining) eBook Problem Walk-Through Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 40% debt and 60% equity; however, the CEO believes that the firm should use more debt. The risk free rate, r, is 3%; the market risk premium, RPM. is 7% and the firm's tax rate is 25%. Currently, SSC's cost of equity is 12%, which is determined by the CAPM. What would be SSC's estimated cost of equity if it changed its capital structure to 50% debt and 50% equity? Do not round intermediate calculations. Round your answer to two decimal places. 10.20 % Hide Feedback Incorrect