Problem 14.08 (Hamada Equation) Sitpatiohal Software Co. (SSC) is trying te establish its optimal capital structure. Its current capital structure con however, the CEO believes that the firm should use more debt. The risk-free rate, rRF, is 3%; the market risk pre reteis 25%. Currently, SSC's cost of equity is 14%, which is determined by the CAPM. What would be SSC's est capital structure to 50% debt and 50% equity? Do not round intermediate calculations. Round your answer to tv ng torestablish its optimal capital structure. Its current capital structure consists of 35% debt and 65% equity; m should use more debt. The risk-free rate, rRF, is 3%; the market risk premium, RP, is 5%; and the firm's tax equity 18.14%, which is determined by the CAPM. What would be SSC's estimated cost of equity if it changed its p/e equity? Do not round intermediate eaiculations. Round your answer to two decimal places