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Excel Online Structured Activity: Hamada equation Situational Software Co. (SSC) is trying to establish optimal capital structure. Its current capital structure consists of 25 debt

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Excel Online Structured Activity: Hamada equation Situational Software Co. (SSC) is trying to establish optimal capital structure. Its current capital structure consists of 25 debt and 75% however, the CEO believes that the firm should use more debt. The risk-free rates is the market is premium, is 5%, and the firm's tax rate is 40%. Currently, SSC's cost of equity is 15%, which is determined by the CAPM. The data has been collected in the Microsoft Excel Online Open the spreadsheet and perform the required analysis to answer the question below Open spreadsheet What would be SSCs estimated cost of equity if it changed its capital structure to Soset and S Do not round Intermediate steps. cout Round your answer to two decad es Hamada equation Original % debt in capital structure, wd Original % common equity in capital structure, We Risk-free rate, PRE Market risk premium, RPM Tax rate. T Firm's cost of equity, 25.00% 75.00% 5.00% 5.00% 40.00% 15.00% Formulas Calculation of firm's current beta: Firm's current beta, bu #N/A Calculation of firm's unlevered beta: Firm's unlevered beta, bu New% of debt in capital structure, Wa New New % of common equity in capital structure, W. New 50.00% 50.00% Calculation of firm's new beta: Firm's new beta, bL New Calculation of firm's new cost of equity: Fimm's new cost of equity... Sheet1

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