Nestle, the Swiss-based multinational firm that produces and distributes a variety of confectionery products, serves as an excellent example of how the international investor may view the global cost of capital differently from a domestic investor, and what that means for Nestle's estimate of its own cost of equity. In the case of Nestle, a prospective Swiss investor might assume a risk free return of 3.3%. an index of Swiss government bond issues, in Swiss francs. That same Swiss investor may also consider the expected market return might be an average return on a portfolio of Swiss equities, the Financial Times Swim index, in Swiss francs, estimated at 10.2%. The Beta coefficient for Nestle is estimated in 0.885. Using these data estimate the cost of equity for Nestle in a domestic context. Assuming that Nestle's debt is represented almost entirely by bonds with a current market value of 500 million Swiss francs, a coupon rate of 3% per annum, a corporate lax rate of 35% and a market value of equity of 700 million Swiss francs, summate the WACC for Nasik in a domestic context The nominal value of the debt is 600 million Swiss francs and the maturity is 10 years. Let's analyze now the international context For the same period as before a global portfolio index shows a market return of 13.7% In addition, a Beta for Nestle estimated on Nestle s returns versus the global portfolio index is much smaller. 0.585. Estimate both the global cost of equity and the global cost of capital for Nestle