Cully Company needs to raise $27 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, 9 percent preferred stock, and 36 percent debt. Flotation costs for issuing new common stock are 12 percent, for new preferred stock, 5 percent, and for new debt, 6 percent. What is the true initial cost figure Southern should use when evaluating its project?

A. $24,930,000

B. $30,928,516

C. $29,486,700

D. $28,549,400

E. $29,738,958