Highlander Inc. has two business divisionsa software product line and an athletic shoe product line. The software business has a cost of equity capital of 11% and the athletic shoe business has a cost of equity capital of 4%. Highlander has 50% of its revenue from software and the rest from the shoe business. Highlander is considering a purchase of another company in the athletic shoe business using equity financing. What is the appropriate cost of capital to evaluate this acquisition?

Group of answer choices

6.0%

4.0%

11.0%

7.5%