Verano Inc. has two business divisions - a software product line and a waste water clean-up product line. The software business has a cost of equity capital of 12% and the waste water clean-up business has a cost of equity capital of 5%. Verano has 50% of its revenue from software and the rest from the waste water business. Verano is considering a purchase of another company in the waste water business using equity financing. What is the appropriate cost of capital to evaluate the business? OA. 5% B. 12% C. 7% OD. 8.5%