Assume that a firm expects that its common stock dividend will be $1.90 next year (D1). It also believes that if it sells new shares, the market will be willing to pay $37.50 per share, but that the firm would only net $33.00 per share after adjusting for flotation costs. Given this data, and assuming that the firm's long-run sustainable growth rate is 6 percent, determine the firm's cost of new equity. 11.52% 11.04% 11.76% 12.00% 11.28%