Problem 13-4 (algorithmic) Question Help Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.60%, the company's credit risk premium is 4.00%, the domestic beta is estimated at 1.11, the international beta is estimated at 0.91, 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 7.90% and the company's effective tax rate is 42%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates a. 8.40% b. 7.30% c. 5.50% d. 4.50% a. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the firm's equity risk premium is 8.40%? | % (Round to two decimal places.)