Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 4.00%, the company's credit risk premium is 3.90%, the domestic beta is estimated at 1.05, the international beta is estimated at 0.89, and the company's capital structure is now 65% debt. The expected rate of return on the market portfolio held by awell-diversified domestic investor is 9.70% and the expected return on a larger globally integrated equity market portfolio is 8.60%. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.50% and the company's effective tax rate is 39%.

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