Your company's stock sells for $36 per share, the next dividend (D1) will be $1.8, its growth rate is a constant 6 percent, and the company will incur a flotation cost of 13 percent if it sells new common stock. What is the firm's cost of new equity, re? \begin{tabular}{|} \hline 12.75% \\ \hline 10.75% \\ \hline 14.75% \\ \hline 11.75% \\ \hline 13.75% \\ \hline \end{tabular}