Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.00 % the company's credit risk premium is 3.60%, the domestic beta is estimated at 1.12, the international beta is estimated at 0.97, and the company's capital structure is now 50% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.30%and the company's effective tax rate is 42%. 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. 5.20%

d. 4.10 %