Aluminum maker Alcoa has a beta of about 1.87, whereas Hormel Foods has a beta of 0.44. If the expected excess return of the market portfolio is 7%, 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 ____percentage points.