Cully Company needs to raise $20 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, 11 percent preferred stock, and 24 percent debt. Flotation costs for issuing new common stock are 14 percent, for new preferred stock, 9 percent, and for new debt, 5 percent. What is the true initial cost figure Southern should use when evaluating its project? Multiple Choice $23,447,188 $22,545,373 O $18,133,333 $22,258,000 $21,643,558 The Drogon Co. just issued a dividend of $3.01 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $60 a share, what is the company's cost of equity? Multiple Choice 10.27% 10.78% O 9.75% 10.02% 5.35%