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answer Suppose Alcatel-Lucent has an equity cost of capital of 10.3%, market capitalization of $11.20 tillion, and an enterprise value of $16 billion. Suppose Alcatel-Lucent's

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Suppose Alcatel-Lucent has an equity cost of capital of 10.3%, market capitalization of $11.20 tillion, and an enterprise value of $16 billion. Suppose Alcatel-Lucent's debt cost of capital is 7% 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 oxpected 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)? a. What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC is \%. (Round to two decimal places.) Suppose Alcatel-Lucent has an equity cost of capital of 10.3%, market capitalization of $11.20 tillion, and an enterprise value of $16 billion. Suppose Alcatel-Lucent's debt cost of capital is 7% 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 oxpected 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)? a. What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC is \%. (Round to two decimal places.)

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