Aluminum maker Alcoa has a beta of about 1.83, whereas Hormel Foods has a beta of 0.46. 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?

Alcoa's equity cost of capital is %. (Round to two decimal places.)

Hormel's equity cost of capital is %. (Round to two decimal places.)

Therefore, has the higher equity cost of capital by nothing percentage points.(Select from the drop-down menus and round to two decimal places.)