Ganado and Equity Risk Premiums.Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.40%, the company's credit risk premium is 3.90%, the domestic beta is estimated at 1.17, the international beta is estimated at 0.89, and the company's capital structure is now 30% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.10% and the company's effective tax rate is 38%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates.

a. 8.60%

b. 7.70%

c. 5.50%

d. 4.40%