Q5 The CFO of a company estimates that the risk-free rate is 2.2%, and the company's credit risk premium is 5.3%. The correlation coefficient between the returns from the company's shares and that from the domestic market is 0.91. The standard deviation of returns from the company's shares is 8% The standard deviation of returns from the domestic market is 11% The international beta for the company's equity is 0.40. The company's capital structure comprises 35% debt and 65% equity. The expected rate of return on a well-diversified market portfolio held by the domestic investor is 14%. The expected market return for a larger globally integrated equity market is 10%. The corporate income tax rate is 25%. For both the domestic CAPM and international CAPM (ICAPM), calculate the company's weighted average cost of capital. (4 marks)