Ganado's Cost of Capital. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.00%, the company's credit risk premium is 3.90%, the domestic beta is estimated at 1.09, the international beta is estimated at 0.93, and the company's capital structure is now 25% debt. The expected rate of return on the market portfolio held by a well-diversified domestic investor is 9.40% and the expected return on a larger globally integrated equity market portfolio is 8.30%. 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 40%. 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? 9.83% (Round to two decimal places.) Using the ICAPM, what is Ganado's cost of equity? 7.84 % (Round to two decimal places.) b. Using the domestic CAPM, what is Ganado's after-tax cost of debt? 5.25 % (Round to two decimal places.) Using the ICAPM, what is Ganado's after-tax cost of debt? 5.25 % (Round to two decimal places.) c. Using the domestic CAPM, what is Ganado's weighted average cost of capital? 6.62 % (Round to two decimal places.) Using the ICAPM, what is Ganado's weighted average cost of capital? 6.03% (Round to two decimal places.)