Nestlé of Switzerland Revisited. Nestlé of Switzerland is revisiting its cost of equity analysis…

Nestlé of Switzerland Revisited. Nestlé of Switzerland is revisiting its cost of equity analysis . As a result of extraordinary actions by the Swiss Central Bank, the Sunes bond index yield (10-year maturity) has dropped to a record low of 0.520%. equity market returns, indexed back to Swiss francs, 8.400% returns, while the Financial Times global The Swiss equity wartiets have been averaging has estimated the company’s domestic beta at 0.825, stand at 8.820%. Nestle’s corporate treasury staff but its global beta (against the larger global equity a. What is Nestlé’s cost of equity based on the domestic portfolio of a Swiss investor? b. What is Nestlé’s cost of equity based on a global nortfolio for a Swiss investor? a LOTS market portfolio) at .515.