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Author Question: Verano Inc. has two business divisionsa software product line and a waste water clean-up product ... (Read 69 times)

jjjetplane

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on: Jul 9, 2019
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 10% and the waste water clean-up business has a cost of equity capital of 7%. 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?
◦ 8.5%
◦ 7%
◦ 10%
◦ 9%
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by jjjetplane on Jul 9, 2019

peter

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jjjetplane

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Reply 2 on: Jul 9, 2019
Gracias!

bblaney

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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