Verano Inc. has two business divisions a software product line and a waste water cleanminus up product line. The software business has a cost of equity capital of12% and the waste water cleanminus up business has a cost of equity capital of8%. Verano has50% 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 thebusiness?