Problem 13-1 (algorithmic) Question Help 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 3.60%, the domestic beta is estimated at 1.12, the international beta is estimated at 0.79, and the company's capital structure is now 30% debt. The expected rate of retum on the market portfolio held by a well-diversified domestic investor is 9.60% and the expected return on a larger globally integrated equity market portfolio is B.60%. Tho before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.60% 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