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Aluminum maker Alcoa has a beta of about 0.46, whereas Hormel Foods has a beta of 1.35. If the expected excess return of the market
Aluminum maker Alcoa has a beta of about 0.46, whereas Hormel Foods has a beta of 1.35. If the expected excess return of the market portfolio is 6%, 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.)
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