Company LCS is evaluating the following list of Investments. The target capital structure is to use 50% Debt and 50% Equity. Net Income last year was RM40 and the company intends to pay dividends to the amount of RM10. The interest rate that banks will charge for any amount of loans is 8%. The Corporate Tax Rate is 30%. Fixed deposits rates in the market is currently 3%. This rate is considered risk free (RF). The stock market is forecasted to provide a return of 15% which will be used as the required return from the market. The unlevered beta for the company is 0.8. Any new shares issue will be charge a 3% flotation cost.

	Required Investment $	ROIC
Project A	40	16%
Project B	40	13.5%
Project C	20	13%
Total Investment	100

Question:

Calculate the new cost of equity after the first stage of financing assuming previous Re is 19.32.