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 4.40%, the domestic beta is estimated at 0.92, the international beta is estimated at 0.59, and the company's capital structure is now 70% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.50% 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. be3.20% averagecosts foaptalados utstandingbon scambi edes bateda 0.59,andthecem a. 7.80% b. 6.70% C. 4.90% d. 3.90% a. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the firm's equity risk premium is 7.80%