Homework: Chapter 13 Homework Save Score: 0 of 1 pt 2 of 2 (1 complete) HW Score: 50%, 1 of 2 pts Problem 13-4 (algorithmic) Question Help Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.60%, the company's credit risk premium is 3.70%, the domestic beta is estimated at 0.99, the international beta is estimated at 0.78, and the company's capital structure is now 75% 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 40% Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates. a. 8.80% b. 7 90% c. 5.70% d. 4.70% a. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the firm's equity risk premium is 8.80%? Ox (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. 7 remaining parts Clear All Check