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. Aluminum maker Alcoa has a beta of about 1.76, whereas Hormel...
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Aluminum maker Alcoa has a beta of about 1.76, whereas Hormel Foods has a beta of 0.95. 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? The firm that has the higher equity cost of capital is |:| by |:|%. (Select from the drop—down menu
and round to two decimal places.)
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