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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

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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 11% 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 11% B. 7% O 0.5% 0.89

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