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Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk - free rate to be 3 . 1 0 % , the company's credit risk premium

Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.10%, the company's credit risk premium is 3.60%, the domestic beta is estimated at 0.99, the international beta is estimated at 0.82, and the company's capital structure is now 50% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 7.70% and the company's effective tax rate is 38%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates.
a.8.50%
b.7.50%
c.5.50%
d.4.40%

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