Caughlin Company needs to raise $75 million to start a new project and will ra

Caughlin Company needs to raise $75 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 75 percent common stock 5 percent preferred stock and 20 percent debt. Flotation
costs for issuing new common stock are 11 percent for new preferred stock 8 percent and for new debt 3 percent.

What is the true initial cost figure the company should use when evaluating its project? (Enter your answer in dollars not
millions of dollars i.e. 1234567. Do not round intermediate calculations and round your final answer to the nearest whole dollar
amount.)