- B . eBook Problem Walk-Through Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 30% debt and 70% o equity; however, the CEO believes that the firm should use more debt. The risk-free rate, the market risk premium, RPM, ' 7W; and the firm's tax rate is 25%. Currently, SSC's cost of equity is 14%, which is determined by the CAPM. What would be SSCs estimated cost of O equity if it changed is capital structure to 50% debt and 50% equity? Do not round intermediate calculations. Round your answer to two decimal places. 10. %