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Aluminum maker Acoa has a beta of about 1.24, whereas Hormel Foods has a beta of 1.67 . If the expected excess return of the

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Aluminum maker Acoa has a beta of about 1.24, whereas Hormel Foods has a beta of 1.67 . If the expected excess return of the market portfolio is 5%, which of these firms has a higher equity cost of capital, and how much higher is it? The frm that has the higher equity cest of capital is b) L. (Select from the drop-down menu and round to two decimal places.)

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