Question 8 of 10 ons Problem 14.08 (Hamada Equation) Check My Work (1 remaining) 0 E eBook Problem Walk-Through Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 20% debt and 60% equity, however, the CEO believes that the form should use more debt. The risk free rate, tw, is 5%; the market ik premium, RPM, is 6%, and the firm's tax rate is 25%. Currently, SSC's cost of equity 16% which is determined by the CAPM. What would be SSC's estimated cost of equity fit changed its capital structure to SOS debit and 60% equity? Do not round intermediate calculations. Round your answer to two dromal places