Cully Company needs to raise $25 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 55 percent common stock, 8 percent preferred stock, and 37 percent debt. Flotation costs for issuing new common stock are 14 percent, for new preferred stock, 5 percent, and for new debt, 4 percent. What is the true initial cost figure Southern should use when evaluating its project? Multiple Choice $27,395,000 $26,542,800 $23,083,333 $27648,750 $28,754,700