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Nestle of Switzerland Revisited. Nestle of Switzerland is revisiting its cost of equity analysis. As a result of extraordinary actions by the Swiss Central Bank

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Nestle of Switzerland Revisited. Nestle 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 0.56% The Swiss equity markets have been averaging 8.70% returns, while the Financial Times global equity market returns indexed back to Swiss francs, stands at 9.03% Nestle's corporate treasury staff has estimated the company's domestic beta at 0 867, but its global beta (against the larger global equity market portfolio) at 0457 a. What is Nestle's cost of equity based on the domestic portfolio for a Swiss Investor? b. What is Nestle's cost of equity based on a global portfolio for a Swiss investor? a. What is Nestle's cost of equity based on the domestic portfolio for a Swiss investor? IX Round to two decimal places) b. What is Nesto's cost of equity based on a global portfolio for a Swiss investor? 0% (Round to two decimal places)

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