12. Aluminum maker Alcoa has a beta of about 1.31, whereas Hormel Foods has a beta of 1.44. If the expected excess return of the market portfolio is 3%, which of these firms has a higher equity cost of capital, and how much higher is it?

Aluminum maker Alcoa has a beta of about 1.31 , whereas Hormel Foods has a beta of 1.44 . If the expected excess return of the market portfolio is 3%, which of these firms has a higher equity cost of capital, and how much higher is it? The firm that has the higher equity cost of capital is by %. (Select from the drop-down menu and round to two decimal places.)