Mini Case 07; Ganado's Cost of Capital Maria Gonzalez now estimates...
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Mini Case 07; Ganado's Cost of Capital Maria Gonzalez now estimates the risk-free rate to be 3.60%, the company's credit risk premium is 4.40%, the domestic beta is estimated at 1.05 , the international beta estimated at .85 , and the company's capital structure is now 30% debt. All other values remain the same as those presented in this chapter in the section "Sample Calculation: Ganado's Cost of Capital.". For both the domestic CAPM and ICAPM, calculate the following: A. Ganado's cost of equity B. Ganado's cost of debt
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