Question: Video Excel Online Structured Activity: Hamada equation Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of
Video Excel Online Structured Activity: Hamada equation Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 20% debt and 80% equity; however, the CEO believe that the firm should use more debt. The risk-free rate, is 4* the market risk premium, and the firm's tax rate is 40%. Currently, sc's cost of equity 14% which is determined by the CAPM. The date has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below X Open spreadsheet What would be SSC estimated cost of equity changed its capital structure to 50% des and som equity Round your answer to two decimal places. Do not round intediate steps Check My Work Rose
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