Aluminum maker Alcoa has a beta of about

1.99,

whereas Hormel Foods has a beta of

0.42.

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?

Question content area bottom

Part 1

Alcoa's equity cost of capital is

enter your response here%.

(Round to two decimal places.)