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 60 percent common stock, 10 percent preferred stock, and 30 percent debt. Flotation costs for issuing new common stock are 10 percent, for new preferred stock, 7 percent, and for new debt, 3 percent. What is the true initial cost figure Southern should use when evaluating its project? Multiple Choice $20,779,221 $21,645,022 $22,510,823 $21,520,000 $18,666,667