Ganado and Equity Risk Premiums.Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be

3.80%,

the company's credit risk premium is

3.80%,

the domestic beta is estimated at

1.08,

the international beta is estimated at

0.77,

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

8.40%

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.8.50%

b.7.60%

c.5.40%

d.4.30%