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UJU CE 5S Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 4.00%, the company's credit risk premium is 4.00%, the domestic beta is estimated at 1.09, the international beta is estimated at 0.77, and the company's capital structure is now 30% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.10% and the company's effective tax rate is 39% Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates RE a. 8.10% b. 7.00% 0.4.80% d. 3.80% Using the domestic CAPM. What is Ganado's weighted average cost of capital if the firm's equity risk premium is 8.10%? 1% (Round to two decimal places Using the ICAPM, what is Ganado's weighted average cost of capital at the firm's equity risk premium is 8,10%? % (Round to two decimal places) b. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the film's equity risk premium is 7.00%? % (Round to two decimal places.) Using the ICAPM, what is Ganado's weighted average cost of capital ir the firm's equity risk premium is 700%? L% (Round to two decimal places) c. Using the domestic CAPM, what is Ganade's weighted average cost of capital the times equity riak premium is 4.80%? % Round to two decimal places) Enter your answer in each of the answer boxes Wh cu 18 MUUDUR. IV W Ganado and Equity Risk Premiums, Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 4.00%, the company's credit risk premium is 4.00%, the domestic bota is estimated at 1.09, the International bota is stimated at 0.77 and the company's capital structure is now 30% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.10% and the company's effective tax rato la 39% Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity riak premium estimates a. 8.10% b. 7.00% c. 4.80% d. 3.80% a. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the firm's equity risk premium is 8, 10%? % (Round to two decimal places) Using the ICAPM, what is Ganado's weighted average cost of capital in the firm's equity ink premium is 8.10%? % (Round to two decimal places b. Using the domestic CAPM, what is Ganade's welghted average cost of capitat if the im's equity riak premium la 7.00%7 % (Round to two decimal places Using the ICAPM, what is Ganado's weighted average cost of capital of the firm's equity risk premium in 7.00 (Round to two decimal places) c. Uning the domestic CAPM, what is Gariado's weighted average cost of capital is the fem's equally riak premiums 4,80? Els Round to two decimal places.) Enter your answer in each of the answer boxes Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 4.00%, the company's credit risk premium is 4.00%, the domestic beta is estimated at 1.09, the international bota is estimated at 0.77, and the company's capital structure is now 30% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.10% and the company's effective tax rate is 39%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates a. 8.10% b. 7.00% C. 4.80% d. 3.80% a. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the firm's equity risk premium is 8.10%? % (Round to two decimal places.) Using the ICAPM, what is Gunado's weighted average cost of capital i the firm's equity risk premium is 8,10%? 0% Round to two decimal placea.) b. Using the domestic CAPM, what is Ganado's welghted average cost of capital the firm's equity risk premium is 7.00%7 % (Round to two decimal places.) Using the ICAPM, what is Ganado's wolphted average cost of capital ir the firm's equity risk promium is 7.00%? % (Round to two decimal places) c. Using the domestic CAPM, what is Ganado's weighted average cost of capitais it the firm's equity risk premium is 4.80%? Round to two decimal places) Enter your answer in each of the answer boxes

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