Problem 13-15 Calculating Flotation Costs Southern Alliance Company needs to raise $150 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 60 percent common stock, 10 percent preferred stock, and 30 percent debt. Flotation costs for Issuing new common stock are 6 percent, for new preferred stock, 3 percent, and for new debt, 2 percent. What is the true initial cost figure the company should use when evaluating its project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g. 1,234,567.) Initial cost