Ganado's Cost of Capital. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.60%, the company's credit risk premium is 3.80%, the domestic beta is estimated at 1.19, the international beta is estimated at 0.86, and the company's capital structure is now 45% debt. The expected rate of return on the market portfolio held by a well-diversified domestic investor is 9.10% and the expected return on a larger globally integrated equity market portfolio is 7.90%. 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%. For both the domestic CAPM and ICAPM, calculate the following: a. Ganado's cost of equity b. Ganado's after-tax cost of debt c. Ganado's weighted average cost of capital a. Using the domestic CAPM, what is Ganado's cost of equity? 10.15% (Round to two decimal places.) Using the ICAPM, what is Ganado's cost of equity? 7.3 % (Round to two decimal places) b. Using the domestic CAPM, what is Ganado's after-tax cost of debt? 5.33 % (Round to two decimal places.) Using the ICAPM, what is Ganado's after-tax cost of debt? 5.33 % (Round to two decimal places) c. Using the domestic CAPM, what is Ganado's weighted average cost of capital? 1% (Round to two decimal places.)