Round to two Decimal Places

Homework: M4: Chapter 12 Homework Save Score: 0 of 1 pt 2 of 7 (1 complete) HW Score: 14.29%, 1 of 7 pts P12-3 (similar to) Question Help Aluminum maker Alcoa has a beta of about 0.85, whereas Hormel Foods has a beta of 0.81. 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? The firm that has the higher equity cost of capital is by %. (Select from the drop-down menu and round to two decimal places.) Alcoa Hormel Foods