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 65 percent common stock, 10 percent preferred stock, and 25 percent debt. Flotation costs for issuing new common stock are 14 percent, for new preferred stock, 8 percent, and for new debt, 4 percent. What is the true initial cost figure Southern should use when evaluating its project?

$21,006,667

$25,813,692

$26,846,240

$24,781,144

$25,507,000

Total money to raise		23,000,000
	Composition	Funds	Floating cost	Floating charges	Total initial Cost	Formula for Funds
Common Stock	65%	14,950,000	14%	2093000	17,043,000	65% of 23M
Preferred stock	10%	2,300,000	8%	184000	2,484,000	10% of 23M
debt	25%	5,750,000	4%	230000	5,980,000	25% of 23M
	100%	23,000,000		2507000	25,507,000
	The correct answer is	25,507,000
	Note : Floating charge is calculated as : funds value x % of floating charge

where am i messing up? because this is wrong some how