Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.20%, the company's credit risk premium is 4.30%, the domestic beta is estimated at 1.18, the international beta is estimated at 0.94, 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 7.80% 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. 8.00% b. 7.10% . 4.90% d. 3.90%