Q Search this course Assignment 6 (Ch 14) Assignment: Assignment 6 (Ch 14) Assignment Score: 0.00% Save Submit Assignment for Grading Questions Problem 14.08 (Hamada Equation) Question 4 of 5 A-Z 2 Check My Work (3 remaining) 3. eBook Problem Walk-Through 5. Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 35% debt and 65% equity; however, the CEO believes that the firm should use more debt. The risk-free rate, rRF, is 4%; the market risk premium, RPM, is 7%; and the firm's tax rate is 40%. Currently, SSC's cost of equity is 15%, which is determined by the CAPM. What would be SSC's 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. % Check My Work (3 remaining) A: 0 Icon Rey Question 4 of 5