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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
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 part (b)? \begin{tabular}{|l|r|r|r|r|} \hline Year & 0 & 1 & 2 & 3 \\ \hline FCF ($ million ) & -100 & 49 & 104 & 73 \\ \hline \end{tabular}
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