Shinedown Company needs to raise $125 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 9 percent, for new preferred stock are 5 percent, and for new debt, 3 percent. What is the true initial cost figure the company should use when evaluating its project?

Answer is NOT 8,500,000. please help me get the right answer