Aluminum maker Alcoa has a beta of about 0.46, whereas Hormel Foods has a beta of 0.68.

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?

he firm that has the higher equity cost of capital is (Alcoa or Hormel foods) by ___%.(Select from the drop-down menu and round to two decimal places.)