Nestl$$ of Switzerland Revisited. $$ Nestl$$ of Switzerland is revisiting its cost of equity analysis. As a result of extraordinary actions by the Swiss Central$$ Bank, the Swiss bond index yield$(10-$year maturity$)$ has dropped to a record low of $0\mathrm{.}57\%.$ The Swiss equity markets have been averaging $8\mathrm{.}60\%$returns$,$ while the Financial Times global equity market$$ returns, indexed back to Swiss$$ francs, stands at $9\mathrm{.}06\%.$Nestl$\text{'}$s corporate treasury staff has estimated the$$ company's domestic beta at $0\mathrm{.}886,$ but its global beta$($against the larger global equity market$$ portfolio$)$ at $0\mathrm{.}458.$

a$.$ What is$$ Nestl$\text{'}$s cost of equity based on the domestic portfolio for a Swiss$$ investor?

b$.$ What is$$ Nestl$\text{'}$s cost of equity based on a global portfolio for a Swiss$$ investor?

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Part $1$

a$.$ What is$$ Nestl$\text{'}$s cost of equity based on the domestic portfolio for a Swiss$$ investor?

$$

enter your response here$\%($Round to two decimal$$ places.$)$

Part $2$

b$.$ What is$$ Nestl$\text{'}$s cost of equity based on a global portfolio for a Swiss$$ investor?

$$

enter your response here$\%($Round to two decimal$$ places.$)$