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Aluminum maker Alco a has a beta of about 1.14, whereas Hormel Foods has a beta of 1.03. If the expected excess return of the

Aluminum maker Alco a has a beta of about 1.14, whereas Hormel Foods has a beta of 1.03. If the expected excess return of the market portfolio is 4%, which of these firms has a higher equity cost of capital, and how much higher is it?

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