Problem $14-19$ Calculating

Flotation Costs $($LO$5,7)$

$2$

points

$8$

$04$:$45$:$45$

Skipped

e Book

Craddock Company needs to raise $$65$ 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 $70\%$ common stock, $5\%$ preferred stock, and $25\%$ debt. Flotation costs for issuing new common stock are $8\%$; for new preferred stock, $5\%$; and for new debt, $2\%.$

What is the true initial cost figure the company should use when evaluating its project? $($Enter the answer in dollars. Do not round intermediate calculations. Round the final answer to $2$ decimal places. Omit $ sign in your response.$)$

Initial cost

$