??Maria? Gonzalez, Ganado's Chief Financial? Officer, estimates the? risk-free rate to be 3.20 %?, the? company's...

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??Maria? Gonzalez, Ganado's Chief Financial? Officer, estimatesthe? risk-free rate to be 3.20 %?, the? company's credit riskpremium is 3.80?%, the domestic beta is estimated at 1.18?, theinternational beta is estimated at 0.89?, and the? company'scapital structure is now 80?% debt. The? before-tax cost of debtestimated by observing the current yield on? Ganado's outstandingbonds combined with bank debt is 7.90?% and the? company'seffective tax rate is 38?%. Calculate both the CAPM and ICAPMweighted average costs of capital for the following equity riskpremium estimates. a. 7.80?% b. 6.90?% c. 4.70?% d. 3.80?% a. Usingthe domestic? CAPM, what is? Ganado's weighted average cost ofcapital if the? firm's equity risk premium is 7.80 %?? 6.40?%?(Round to two decimal? places.) Using the? ICAPM, what is?Ganado's weighted average cost of capital if the? firm's equityrisk premium is 7.80?%?

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??Maria? Gonzalez, Ganado's Chief Financial? Officer, estimatesthe? risk-free rate to be 3.20 %?, the? company's credit riskpremium is 3.80?%, the domestic beta is estimated at 1.18?, theinternational beta is estimated at 0.89?, and the? company'scapital structure is now 80?% debt. The? before-tax cost of debtestimated by observing the current yield on? Ganado's outstandingbonds combined with bank debt is 7.90?% and the? company'seffective tax rate is 38?%. Calculate both the CAPM and ICAPMweighted average costs of capital for the following equity riskpremium estimates. a. 7.80?% b. 6.90?% c. 4.70?% d. 3.80?% a. Usingthe domestic? CAPM, what is? Ganado's weighted average cost ofcapital if the? firm's equity risk premium is 7.80 %?? 6.40?%?(Round to two decimal? places.) Using the? ICAPM, what is?Ganado's weighted average cost of capital if the? firm's equityrisk premium is 7.80?%?