Ganado's Cost of Capital.Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.70%, the company's credit risk premium is 4.50%, the domestic beta is estimated at 0.94, the international beta is estimated at 0.61, and the company's capital structure is now 50% debt. The expected rate of return on the market portfolio held by a well-diversified domestic investor is 9.60% and the expected return on a larger globally integrated equity market portfolio is 8.80%. 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? 1% (Round to two decimal places.) Using the ICAPM, what is Ganado's cost of equity? % (Round to two decimal places.) b. Using the domestic CAPM, what is Ganado's after-tax cost of debt? 0% (Round to two decimal places) Using the ICAPM, what is Ganado's after-tax cost of debt? % (Round to two decimal places.) c. Using the domestic CAPM, what is Ganado's weighted average cost of capital? % (Round to two decimal places.) Using the ICAPM, what is Ganado's weighted average cost of capital? 1% (Round to two decimal places.)