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Aluminum maker Alcoa has a beta of about , whereas Hormel Foods has a beta of . If the expected excess return of the market

Aluminum maker Alcoa has a beta of about , whereas Hormel Foods has a beta of . If the expected excess return of the market portfolio is %, 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)

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