Question: Multinational Business Fiance Fourteenth Edition David K. Eiteman Chapter 13 1. Ganados Cost of Capital. Maria Gonzalez now esti- mates the risk-free rate to be

Multinational Business Fiance Fourteenth Edition David K. Eiteman

Chapter 13

1. Ganados Cost of Capital. Maria Gonzalez now esti- mates the risk-free rate to be 3.60%, the companys credit risk premium is 4.40%, the domestic beta is estimated at 1.05, the international beta is estimated at 0.85, and the companys capital structure is now 30% debt. All other values remain the same as those presented in this chapter in Sample Calculation: Ganados Cost of Capital.

For both the domestic CAPM and ICAPM, calculate the following:

a. Ganados cost of equity

b. Ganados cost of debt

c. Ganados weighted average cost of capital

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