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 3.90%, the domestic beta is estimated at 1.07, the international beta is estimated at 0.77, and the company's capital structure is now 65% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.20% 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. 7.50% c. 5.50% d. 4.60%