Aluminum maker Alcoa has a beta of about 1.96, whereas Hormel Foods has a beta of 0.65.

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Aluminum maker Alcoa has a beta of about 1.96, whereas Hormel Foods has a beta of 0.65. If the expected excess return of the marker portfolio is 3%, which of these firms has a higher equity cost of capital, and how much higher is it?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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