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4) Axon Industries needs to raise $47M for a new investment project. If the firm issues one- year debt, it may have to pay an

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4) Axon Industries needs to raise $47M for a new investment project. If the firm issues one- year debt, it may have to pay an interest rate of 15%, although Axon's managers believe that 11% would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by 17%. NOTE: Provide your answers in Millions. E.G. for 100M you must enter 100.0000, for 20M you must enter 20.0000, etc. a. What is the cost to current shareholders of financing the project out of debt? b. What is the cost to current shareholders of financing the project out of Equity? c. What should be the undervaluation of equity to match the cost of debt

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