Question: WEERS Back to Assignment Attempts 0 Keep the Highest 1. Problem 14.00 (Hamada Equation) eBook Problem Walk Through Situational Software Co. (SSC) is trying to

 WEERS Back to Assignment Attempts 0 Keep the Highest 1. Problem

WEERS Back to Assignment Attempts 0 Keep the Highest 1. Problem 14.00 (Hamada Equation) eBook Problem Walk Through Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 35% debt and equity, however, the CEO believes that the firm should use more debt. Therlik free rate, w, is the market risk premium, Ris 7% and the firm's tax rate is 25 CurrentlySSC's cost of acuity is 16%, which is determined by the CAPM. What would be SSC 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 AZ

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