Maria Gonzalez estimates Ganado's risk-free rate of 4%, the Equity risk premium of 10%, the domestic beta is 1.5, and international beta is 1.1. Ganado's Debt/Equity ratio is 2/3. Maria assumes the risk-free rate of interest as 4%, using US government 10-year Treasury bond rate. The expected rate of return of the market portfolio is assumed to be 9%, the expected rate of return on portfolio held by a well diversified domestic investor. US corporate tax is 35%.

For both the domestic and CAPM and ICAPM, Compute Ganado's WACC under the above conditions.

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