Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.30%, the company's credit risk premium is 3.90%, the domestic beta is estimated at 0.99, the international beta is estimated at 0.73, and the company's capital structure is now 25% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.40% and the company's effective tax rate is 40%. 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. 6.00% d. 4.90% . 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.)