complete part C only
Suppose Alcatel-Lucent has an equity cost of capital of 9.5%, market capitalization of $10.08 bilion, and an enterprise value of $14 bilion Suppose Alcatel-Lucent's debt cost of capitalis 74% and its marginal tax rate is 32% 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. I Alcatel-Lucent maintains its debl-equity ratio, what is the debt capacity of the project in part (b)? a. What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC in 3 25 % (Round to two decimal places) b. 1 Alcatel-Lucent maintains a constant debt equity rato, what is the value of a project with average risk and the expected from cash flows as shown here, The NPV of the project is $ 86.56 milion (Round to two decimal places) c. Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part(b)? The debt capacity of the project in part(b) is as follows: (Round to two decimal places.) Year 0 2 Debt capacity $ milion $ S million $ milion 1 3 core: 0.33 of 1 pt 1 of 6 (1 complete) HW Score: 5.56%, 0. P18-6 (similar to) Question Suppose Alcatel-Lucent has an equity cost of capital of 9.5%, market capitalization of $10.08 bilion, and an enterprise value of $14 bilion. Suppose Alcatel-Lucent's debt cost of capital is 7.4% and its margir is 32% a. What is Alcatel-Lucent's WACC? Tb. 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. I 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 8.25% (Round to two decimal places.) 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? Data Table The NPV of the project is $ 86.96 million (Round to two decimal places) c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)? The debt capacity of the project in part(b) is as follows: (Round to two decimal places) Year 0 1 2 3 Debt capacity million $ million $ milion million (Click on the loon located on the top-right corner of the date table below in order to copy its contents into a spreadsheet.) 3 Year FCF (5 million) 0 -100 1 45 2 102 74 Print Done