OS sb re ct Ganado's Cost of Capital. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.90%, the company's credit risk premium is 3.70%, the domestic bota is estimated at 0.97 the International beta is estimated at 0.69, and the company's capital structure is now 70% debt. The expected rate of return on the market portfolio held by a well-diversified domestic investor is 8.80% and the expected return on a larger globally integrated equity market portfolio is 7.60%. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 7.80% and the company's effective tax rate is 30% 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 a. Using the domestic CAPM, what is Ganado's cost of equity? Sb 1% (Round to two decimal places.) Using the ICAPM, what is Ganado's cost of equity? 1% (Round to two decimal places.) b. Using the domestic CAPM, what is Ganado's after-tax cost of debt? O % (Round to two decimal places.) Using the ICAPM, what is Ganado's after-tax cost of debt? % (Round to two decimal places.) c. Using the domestic CAPM, what is Ganado's weighted average cost of capital? % (Round to two decimal places.) Using the ICAPM, what is Ganado's weighted average cost of capital? N% (Round to two decimal places.) uits ost