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Aluminum maker Alcoa has a beta of about 1.87 , whereas Hormel Foods has a beta of 0.43 . If the expected Question list excess
Aluminum maker Alcoa has a beta of about 1.87 , whereas Hormel Foods has a beta of 0.43 . If the expected Question list 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? Question 1 Alcoa's equity cost of capital is \%. (Round to two decimal places.) Question 2 Hormel's equity cost of capital is %. (Round to two decimal places.) Therefore, has the higher equity cost of capital by percentage points. (Select from Question 3 the drop-down menus and round to two decimal places.) Question 4 Question 5 Question 6 You have $62,000. You put 25% of your money in a stock with an expected return of 15%,$37,000 in a stock with an expected return of 13%, and the rest in a stock with an expected return of 19%. What is the expected return of your portfolio? The expected return of your portfolio is \%. (Round to two decimal places.) CoffeeCarts has a cost of equity of 14.5%, has an effective cost of debt of 4.3%, and is financed 70% with Question list equity and 30% with debt. What is this firm's WACC? Question 7 CoffeeCarts's WACC is \%. (Round to one decimal place.) Question 8
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