Southern Alliance Company needs to raise $26 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, 8 percent preferred stock, and 27 percent debt. Flotation costs for issuing new common stock are 13 percent, for new preferred stock, 4 percent, and for new debt, 3 percent. What is the true initial cost figure Southern should use when evaluating its project? (Do not round your intermediate calculations.)

$28,490,800

$24,266,667

$29,904,888

$27,604,512

$28,754,700