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 14% and the waste water clean-up...

Extracted text: 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 14% and the waste water clean-up business has a cost of equity capital of 6%. 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? O A. 10% О В. 6% О С. 9% O D. 14%