Aluminum maker Alcoa has a beta of about

1.571.57,

whereas Hormel Foods has a beta of

0.610.61.

If the expected excess return of the market portfolio is

6 %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

Hormel Foods or other one

by

nothing%.

(Select from the drop-down menu and round to two decimal places.)