Caughlin Company needs to raise $48 million to start a new project. The company has a target

capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt.

Flotation costs for issuing new common stock are 8 percent, for new preferred stock, 5 percent,

and for new debt, 2 percent. What is true initial cost figure the company should use when

evaluating its project?