Photochronograph Corporation $($PC$)$ manufactures time series photographic equipment. PC raises $60\%$ of its financing from common stock, $10\%$ from preferred stock, and $30\%$ from debt. The initial investment would be $$12,000,000.$ The company raises all equity from outside financing. The flotation costs are :

a$.$ A new issue of common stock: $11$ percent.

b$.$ A new issue of $5-$year bonds: Four percent.

c$.$ Preferred stock: $7$ percent.

Required:

What is the true initial cost that PC should use when evaluating its project?