Market conditions have changed. Maria Gonzalez now estimates the risk-free rate to be 3.60%, the company's credit risk premium is 4.40%, the domestic beta is estimated at 1.05, the international beta at .85, and the company's capital structure is now 30% debt. All other values remain the same. For both the domestic CAPM and ICAPM, calculate: a. Ganado's cost of equity b. Ganado's cost of debt c. Ganado's weighted average cost of capital Domestic International Assumptions CAPM ICAPM Ganado's beta, 1.05 0.85 Risk-free rate of interest, krf 3.60% 3.60% Company credit risk premium 4.40% 4.40% Cost of debt, before tax, kd 8.00% 8.00% Corporate income tax rate, t 35% 35% General return on market portfolio, km 9.00% 8.00% Optimal capital structure: Proportion of debt, D/V 30% 30% Proportion of equity, E/V 70% 70% a)Ganado's cost of equity ke = krf + ( km - krf ) b)Ganado's cost of debt, after tax kd x ( 1 - t ) c)Ganado's weighted average cost of capital WACC = [ ke x E/V ] + [ ( kd x ( 1 - t ) ) x D/V ]