Question Help Suppose Alcatel-Lucent has an equity cost of capital of 10.9%, market capitalization of...

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Question Help Suppose Alcatel-Lucent has an equity cost of capital of 10.9%, market capitalization of $9.10 bilion, and an enterprise value of $13 billion. Suppose Alcatel Lucent's debt cost of capital is 5.8% and its marginal tax rate is 37% a. What is Alcatel-Lucent's WACC? b. If Alcatel-Lucent maintains a constant debt equity ratio, what is the value of a project with average risk and the expected free cash flows as shown here ? c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in partib? a. What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC is % (Round to two decimal places.) 0 Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year FCF ($ million) - 100 1 47 2 101 7 5 Print Done Question Help Suppose Alcatel-Lucent has an equity cost of capital of 10.9%, market capitalization of $9.10 bilion, and an enterprise value of $13 billion. Suppose Alcatel Lucent's debt cost of capital is 5.8% and its marginal tax rate is 37% a. What is Alcatel-Lucent's WACC? b. If Alcatel-Lucent maintains a constant debt equity ratio, what is the value of a project with average risk and the expected free cash flows as shown here ? c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in partib? a. What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC is % (Round to two decimal places.) 0 Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year FCF ($ million) - 100 1 47 2 101 7 5 Print Done

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