Question 40 ABC software is trying to establish its optimal capital structure. It currently has 30% debt and 70% equity. However, the firm CEO believes that the firm should use more debt. The risk-free rate is 3% and the market risk premium is 5% The firm's tax rate is 35% and the cost of equity is 10%, as determined by the CAPM. Assume that the firm changed its capital structure to 40% debt and 60% equity How much should be the new cost of equity for this company? Enter your answer in the following format: 0.1234; Hint #1: Answer is between 0.0944 and 0.1291