Verano Inc. has two business divisions long dash— a software product line and a wastewater 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 6%. Verano has50% of its revenue from software and the rest from the wastewater business. Verano is considering a purchase of another company in the wastewater business using equity financing. What is the appropriate cost of capital to evaluate the business?

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ANSWER Veranos weighted average cost of capital would be 9 ... View the full answer