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plz do a and b Nestl of Switzerland Revisited. Nestle of Switzerland is revisiting its cost of equity analysis. As a result of extraordinary actions
plz do a and b
Nestl 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 yleld (10-year maturity) has dropped to a record low of 0.48%. The Swiss equity markets have been averaging 8.10% returns, while the Financial Times global equity market returns, indexed back to Swiss francs, stands at 8.45% Nestle's corporate treasury staff has estimated the company's domestic beta at 0.807, but its global botn (against the larger global equity market portfolio) at 0.503. 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 Nestid's cost of equity based on the domestic portfolio for a Swiss Investor? 0% (Round to two decimal piacon.) Step by Step Solution
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