10:35 International Financial Management U01A Maria Ponce de Leon 06/16/22 10:35 PM (?) = Homework: Mylab Chapter 13 Assignment Question 2, Problem 13-4 (algorithmic) Part 1 of 8 HW Score: 41.67%, 0.83 of 2 points O Points: 0 of 1 Save Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.80%, the company's credit risk premium is 4.40%, the domestic beta is estimated at 1.18, the international beta is estimated at 0.86, and the company's capital structure is now 40% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.30% and the company's effective tax rate is 38%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates. a. 8.70% b. 7.80% c. 5.60% d. 4.70% a. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the firm's equity risk premium is 8.70%? % (Round to two decimal places.)