Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.30%, the company's credit risk premium is 3.70%, the domestic beta is estimated at 1.08. the international beta is estimated at 0.85, and the company's capital structure is now 55% 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 39%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates. a. 8.30% b. 7.40% c. 5.40% d. 4.30% capital if the firm's equity risk premium is 8.30%? a. Using the domestic CAPM, what is Ganado's weighted average cost % (Round to two decimal places.) Help me solve this View an example Get more help Clear all Check