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Axon Industries needs to raise $25.85M for a new investment project. If the firm issues one-year debt, it may haveto pay an interest rate of

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Axon Industries needs to raise $25.85M for a new investment project. If the firm issues one-year debt, it may haveto pay an interest rate of 7.874, although Axon's managers believe that 5.01 % would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by 11.2%. What should be the undervaluation of equity to match the cost of debt? NOTE: Provide your answers in Percentages, L.G. for 10.19% you must enter 10,15, for 2.05% you must enter 2,05, etc

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