Verano Inc

question 80

Multiple Choice

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 4%. 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?

• A) 11.0%
• B) 7.5%
• C) 4.0%
• D) 6.0%

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Definitions:

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires.

Therapeutic Relationship

The professional, yet personal, alliance between therapist and client, characterized by trust, respect, and confidentiality, critical to effective therapy outcomes.

Attending Behaviors

Refers to the way a listener uses verbal and non-verbal gestures to show they are engaged and understand the speaker.

Eye Contact

The act of looking directly into another person's eyes, which can convey a variety of intentions or emotions.