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Axon Industries needs to raise $29.71M for a new investment project. If the firm issues one-year debt, it may haveto pay an interest rate of

Axon Industries needs to raise $29.71M for a new investment project. If the firm issues one-year debt, it may haveto pay an interest rate of 11.71 %, although Axon's managers believe that 4.57 % would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by 10.26 %. What should be the undervaluation of equity to match the cost of debt

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