Question: Hvideo Excel Online Structured Activity Hamada equation Situational Software Co. (SSC) is trying to establish optitial capital structure current capital structure consists of 2556 debt

 Hvideo Excel Online Structured Activity Hamada equation Situational Software Co. (SSC)
is trying to establish optitial capital structure current capital structure consists of

Hvideo Excel Online Structured Activity Hamada equation Situational Software Co. (SSC) is trying to establish optitial capital structure current capital structure consists of 2556 debt and 75, love the cho believes that the form should use more debt. The risk-freert, is the market risk premium, A6%; and the firm's tax rate is 40%. Currently, to equity is 154, which is determined by the CAPM. The data has been collected in the Microsoft Excel Online file below. Open the spreadhunt and perform the required analysis to answer the question below X . Open spreadsheet What would be SSC's estimated cost of equity fit changed its capital structure to 50 debt and 50 equity Round your answer to decimal places. Do not round intermediate steps Reset Prom el me what you want to do Arial 10 BIYAV.. 2 Merge Number B11 B C D E 25.00% 75 0096 5.00% 3.00% 40.0096 15.0096 Formulas NA 1 Hamada equation 2 3 Original % debt in capital structure, Wa 4 Original % common equity in capital structure, We 5 Risk-free rate, 6 Market risk premium, RP 7 Tax rate, 8 Firm's cost of equity is 9 10 Calculation of firm's current beta: 11 Firm's current beta, bu 12 13 Calculation of firm's unlevered beta: 14 Firm's unlevered beta bu 15 116 Now % of debt in capital structure. We have 17 New % of common equity in capital structure. We 18 19 Calculation of firm's new beta: 20 Firm's now bota bi 21 22 Calculation of firm's new cost of equity: 23 Firm's new cost of equity The 2 LENIA 50 0096 50.009 #NA ENA Sheet1

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