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(Extra credit 2 points.) Maria Gonzalez estimates the risk-free rate to be 3.60%, the company's credit risk premium is 4.40%, the domestic beta is estimated
(Extra credit 2 points.) Maria Gonzalez estimates the risk-free rate to be 3.60%, the company's credit risk premium is 4.40%, the domestic beta is estimated at 1.05, the international beta at .85, and the company's capital structure is 30% debt. Based on ICAPM, calculate weighted average cost of capital. Cost of debt, before tax, 8.00% Corporate income tax rate, 35% General return on market portfolio, 8.00% Based on ICAPM, calculate weighted average cost of capital
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