Cully Company needs to raise $$23$ million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of $65$ percent common stock, $9$ percent preferred stock. and $26$ percent debt. Flotation costs for issuing new common stock are $13$ percent, for new preferred stock. $6$ percent, and for new debt, $3$ percent. What is the true initial cost figure Southern should use when evaluating its project?

Multiple Cholce

$$21,313,333$

$$25,247,00$

$$26,510,030$

$$24,470796$

$$25,490,413$