Southern Alliance Company needs to raise $23 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, 12 percent preferred stock, and 33 percent debt. Flotation costs for issuing new common stock are 11 percent, for new preferred stock, 10 percent, and for new debt, 3 percent.

Required: What is the true initial cost figure Southern should use when evaluating its project? (Do not include the dollar sign ($). Do not round the weighted average floatation cost. Round your answer to the nearest whole dollar amount. (e.g., 1,234,567))

True initial cost $________