Final answer:
The question asks about calculating the Equity Risk Premium, which involves the additional expected return on investments in stocks beyond a risk-free rate.
Step-by-step explanation:
The subject in question is related to the calculation of the Equity Risk Premium. This is a financial concept that represents the excess return that investing in the stock market provides over a risk-free rate. Maria Gonzalez, Ganado's Chief Financial Officer, has estimated a risk-free rate of 3.70% and indicates that the company's credit risk premium is 4.20%. It is likely that the student is seeking to understand how these percentages influence investment decisions or the overall cost of capital for the company.