Nestle cost of equity based on domestic portfolio

Assignment Help Financial Management
Reference no: EM131905651

Nestle of Switzerland Revisited.? Nestle of Switzerland is revisiting its cost of equity analysis in 2014. 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 0.50?%. The Swiss equity markets have been averaging 8.80?% returns, while the Financial Times global equity market? returns, indexed back to Swiss? francs, is at 9.35%.

?Nestle's corporate treasury staff has estimated the? company's domestic beta at 0.947?, but its global beta? (against the larger global equity market? portfolio) at 0.493.

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?

Reference no: EM131905651

Questions Cloud

How much must be deposited now in order to withdraw : How much must be deposited now in order to withdraw $15,000 at the end of each year for 30 years, if interest is 11% compounded annually?
What is aftertax cost of debt : What is the aftertax cost of debt? What is the company’s WACC?
What is the current value of company : Calvert Corporation expects an EBIT of $19,750 every year forever. What is the current value of the company?
Deposits are made at the end of the period : What is the future value of $800 deposited annually at 9% interest for 25 years if the deposits are made at the end of the period?
Nestle cost of equity based on domestic portfolio : What is? Nestle's cost of equity based on domestic portfolio for Swiss? investor? What is? Nestle's cost of equity based on global portfolio for Swiss? investor
What price could mark sell the bond for in situation : What if mark’s government of Canada bond had a coupon rate of 9%, what price could mark sell the bond for in this situation ?
Large regulated electric utility company : A large pharmaceutical company or a large regulated electric utility company?
The percentage of the founder family votes to class vote : What is the percentage of the founder's family votes to Class B votes?
How much is accrued interest : IBM bond pays 6.25% interest on face value of $100, semi-annually on May 21st and November 21st. The bond is sold on August 1st. How much is accrued interest?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd