Aluminum maker Alcoa has a beta of about 2.00, whereas Hormel Foods has a beta of 0.45.
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Aluminum maker Alcoa has a beta of about 2.00, whereas Hormel Foods has a beta of 0.45. 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?
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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