Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Ofcer, estimates the riskfree rate to be 3.60%, the company's credit risk premium is 3.80%, the domestic beta is estimated at 1.16, the international beta is estimated at 1.01, and the company's capital structure is now 45% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.60% and the company's effective tax rate is 35%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates. a. 8.60% b. 7.50% c. 5.70% d. 4.70% E) a. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the firm's equity risk premium is 8.60%? D% (Round to two decimal places.)