pts Assume that a firm has just paid a dividend of $4.00 per share (Do), has a dividend payout rate of 75.0 percent, and a return on equity of 20.0 percent. Also assume that the risk-free rate is 6.0 percent, the risk premium on the market is 11.0 percent, and that the beta of this stock is 1.00. Finally assume that if the firm issues new shares of common stock, that investors will be willing to pay the current price of the stock, but that the firm will have flotation expense equal to 20.0 percent of this price. Given this information, determine the firm's cost of newly issued equity (re). 18.50% 19.50% O 20.00% O 19.00% O 18.00%