Q9

Axon Industries needs to raise $24.22M for a new investment project. If the firm issues one-year debt, it may haveto pay an interest rate of 11.92 %, although Axon's managers believe that 4.59 % would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by 11.32 %. What is the cost to current shareholders of financing the project out of debt? NOTE: Provide your answers in Millions. E.G. for 100M you must enter 100.0000, for 20M you must enter 20.0000, etc