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P14-19 Calculating Flotation Costs L04 Southern Alliance Company needs to raise $21 million to start...

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P14-19 Calculating Flotation Costs L04 Southern Alliance Company needs to raise $21 million to start a new project and will raise the money by seling new bonds?) The company wil generate no internal equity for the foreseeable future. The compeny has a target capital stru ure of 70 percent common stock (weEl. 8 percent preferred stock (wpl, and 22 percent debt (wol. Flotation costs for issuing new common stock are 12 percent, for new preferred stock 5 percent, and for new debt 5 percent What is the true initial cost figure Southern should use when evaluating its project? (Do not round your Intermediate calculations) O$24239733 $23.079.000 $22.375.139 O $19460.000 O$23.307436 References Book& Resources Multiple Cholce

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