Oval Inc. just paid a dividend equal to $1.50 per share on its common stock, and it expects this dividend to grow by 3 percent per year indefinitely. The firm plans to issue common stock, which has a $16 per share market price, to raise funds to support operations. Oval's investment bankers estimate that the flotation costs for new issues of common stock will be equal to 7 percent of the issue (market) price. What is Oval's cost of new common equity, re?