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 Swiss bond index yield (10-year maturity) has dropped to a record low of 0.520%. The Swiss equity markets have been averaging 8.400% returns, while the Financial Times global equity market returns, indexed back to Swiss francs, are at 8.820%. Nestlé’s corporate treasury staff has estimated the company’s domestic beta at 0.825 but its global beta (against the larger global equity market portfolio) at .515. What is Nestlé’s cost of equity based on the domestic portfolio of a Swiss investor? What is Nestlé’s cost of equity based on a global portfolio for a Swiss investor?

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Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.