Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.90%, the company's credit risk premium is 4.40%, the domestic beta is estimated at 1.16, the international beta is estimated at 0.82, and the company's capital structure is now 35% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.00% 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. 8.50% b. 7.40% c. 5.40% d. 4.40%