1. Nestle is a Swiss-based MNC that produces and distributes a variety of food products. Insert Tab You are given the following information. Delete Risk-free rate: Rr-3.3%; Swiss market index return: Raz -10% Backspace Nestle's beta calculated using Rsz: BN-SZ=0.885 Capsl World market index return: Rw =11% Nestle's beta calculated using Rw: BN-w =0.585. Assume that Nestle pays 4% for its debt, has a debt/total capitalization ratio of 0.35 and pays a tax rate of 20%. Enter CAPM is given by Ri = Rf + Bi(RM- Rf ); RM is the market return. WACC is given by ke *(E/(D+E)) + kd*(E/(D+E))*(1-tax); ke is the cost of equity and ka is the cost of debt. Shift Calculate the cost of equity capital for Nestle assuming a. Swiss market is segmented (10 points) JUp Un b. Swiss market is perfectly globally integrated (10 points) Calculate Nestle's WACC, considering the Swiss market is globally integrated. (10 points) C