13.3 The Cost of Equity for Nestl of Switzerland stimate of its cost of equity will depend upon whether a Swiss investor is thought to hold a domest ese of eity securities or a giobal portfolio. Domestic Portfolio for Swiss Investor = 3.3% (Swiss bond index yield) = 10.2% (Swiss market portfolio in SF) Global Portfolio for Swiss Investor kRF = 3.3% (Swiss bond index yield) kM-13.7% (Financial Times Global index in SF) Avest,-0.585 (Nestl versus FTA-Swiss index) Bes -0885 Nestl versus Swiss mark Beste et portfolio) Required return on Nestl kNeste = 9.4065% uroer Allvalues are taken from Ren Stulz, "The Cost of Capital in Internationally Integrated Markets: The Case of Nesti," European Financial Management Required return on Nestl: k Nestl = 9.3840% 1, No. 1, March 1995, pp. 11-22 Ren Stulz,"The Cost of Capital in Internationally Integrated Markets: The Case of Nestl,' European Financial Management, Vol. 1, No. 1, March 1995, pp. 11-22. 13.3 The Cost of Equity for Nestl of Switzerland stimate of its cost of equity will depend upon whether a Swiss investor is thought to hold a domest ese of eity securities or a giobal portfolio. Domestic Portfolio for Swiss Investor = 3.3% (Swiss bond index yield) = 10.2% (Swiss market portfolio in SF) Global Portfolio for Swiss Investor kRF = 3.3% (Swiss bond index yield) kM-13.7% (Financial Times Global index in SF) Avest,-0.585 (Nestl versus FTA-Swiss index) Bes -0885 Nestl versus Swiss mark Beste et portfolio) Required return on Nestl kNeste = 9.4065% uroer Allvalues are taken from Ren Stulz, "The Cost of Capital in Internationally Integrated Markets: The Case of Nesti," European Financial Management Required return on Nestl: k Nestl = 9.3840% 1, No. 1, March 1995, pp. 11-22 Ren Stulz,"The Cost of Capital in Internationally Integrated Markets: The Case of Nestl,' European Financial Management, Vol. 1, No. 1, March 1995, pp. 11-22