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Calculate the capm and icapm weighted average costs

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Maria? Gonzalez, Ganado's Chief Financial? Officer, estimates the? risk-free rate to be 3.70%?, the? company's credit risk premium is 3.90?%, the domestic beta is estimated at 1.07?, the international beta is estimated at 0.81?, and the? company's capital structure is now 25?% 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 30?%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates.

Reference no: EM132806871

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