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Please answer all parts! Thank you! Aluminum maker Alcoa has a beta of about 1.89, whereas Hormel Foods has a beta of 0.48. If the
Please answer all parts! Thank you!
Aluminum maker Alcoa has a beta of about 1.89, whereas Hormel Foods has a beta of 0.48. If the expected excess return of the market portfolio is 6%, 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.)Step by Step Solution
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