Question
Aluminum maker Alcoa has a beta of about 0.99, whereas Hormel Foods has a beta of 1.56 . If the expected excess return of the
Aluminum maker Alcoa has a beta of about 0.99, whereas Hormel Foods has a beta of 1.56 . 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?
The firm that has the higher equity cost of capital is ____ by %.
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Handbook Of Research Methods And Applications In Empirical Finance
Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk
1st Edition
1782540172, 978-1782540175
