$1.$Axon Industries needs to raise $$1000000$ USDs for a new investment project. If the firm issues $1-$year debt, it may have to pay an interest rate of $10\%,$ although Axon's managers believe that $8\%$ would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by $9\%.$What is the cost $($in USDs$)$ to current shareholders of financing the project out of retained earnings?

$2.$Axon Industries needs to raise $$1000000$ USDs for a new investment project. If the firm issues $1-$year debt, it may have to pay an interest rate of $10\%,$ although Axon's managers believe that $8\%$ would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by $9\%.$What is the cost $($in USDs$)$ to current shareholders of financing the project out of debt?

$3.$Axon Industries needs to raise $$1000000$ USDs for a new investment project. If the firm issues $1-$year debt, it may have to pay an interest rate of $10\%,$ although Axon's managers believe that $8\%$ would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by $9\%.$What is the cost $($in USDs$)$ to current shareholders of financing the project out of equity?