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K Aluminum maker Alcoa has a beta of about 1.96, whereas Hormel Foods has a beta of 0.33. If the expected excess return of
K Aluminum maker Alcoa has a beta of about 1.96, whereas Hormel Foods has a beta of 0.33. If the expected excess return of the market portfolio is 5%, which of these firms has a higher equity cost of capital, and how much higher is it? Alcoa's equity cost of capital is 4.65 %. (Round to two decimal places.)
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
