Southern Alliance Company needs to raise $21 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 55 percent common stock, 11 percent preferred stock, and 34 percent debt. Flotation costs for issuing new common stock are 8 percent, for new preferred stock, 7 percent, and for new debt, 4 percent. What is the true initial cost figure Southern should use when evaluating its project?

$22,371,300
$19,670,000
$23,365,786
$21,568,418
$22,467,102