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Aluminum maker Alcoa has a beta of about 1.94, whereas Hormel Foods has a beta of 0.4. If the expected excess return of the market
Aluminum maker Alcoa has a beta of about 1.94, whereas Hormel Foods has a beta of 0.4. 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 nothing%
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