Within the Modigliani Miller framework, under Scenario 1 (with no frictional costs, no taxes, and no financial distress), consider a firm with $40 million in cash flows, initially all equity financed, and the cost of equity is 13%. If the firm takes on new debt of $150 million, with a 9% interest rate, what is the new Re or cost of equity for the firm? Select one: a. just over 16% b. 18.4% c. 26.5% d. just under 13% e. 13%