Cully Company needs to raise $$50$ 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 $50$ percent common stock, $10$

percent preferred stock, and $40$ percent debt. Flotation costs for issuing new common

stock are $6$ percent, for new preferred stock, $3$ percent, and for new debt, $1$ percent.

What is the true initial cost figure the company should use when evaluating its project?

$($Do not round intermediate calculations and enter your answer in dollars, not millions,

rounded to the nearest whole dollar amount, e$.$g$.,1,234,567.)$

Initial cost