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i just need 1 and 2 on Part C. Suppose Alsatel-Lucent has an equity cost of capital of 2.6%, market capitalization of $10.80 bilion, and

i just need 1 and 2 on Part C. image text in transcribed
image text in transcribed
Suppose Alsatel-Lucent has an equity cost of capital of 2.6%, market capitalization of $10.80 bilion, and an enterprise value of $15 bilion. Suppose Alcate-Lucent's debt cost of capial is 6.8% and its marginal tax rate is 38%. a. What is Alcatal-Lucents WACC? b. It Acatel-Lucent maintains a constant debt-equily ratio, what is the value of a project with average risk and the expected tree cash flows as shown here. c. If Alcotel-Lucent maintains its debt-equity rato, what is the debt capacity of the project in part (b)? a. What is Acateltucent's WhcC? AcadolLucents WACC is 8.09 W. (Round to two decimal places.) b. If Acalel-Lucent maintains a constant debt-equily natio, what is the value of a preject with average risk and the expected free cash flows as shown here. The NPV of the projact is $91.23 milion. (Round to two decimal ploces.) c. It Acatel-Lucent maintains its dobt-0guily raso, what is the debt capachy of the project in part (b)? The debt capacity of the project in part (b) is as follows: (Round to two decimal places) \begin{tabular}{lcccc} Year & 0 & 1 & 2 & 3 \\ \hline FCF (\$ million) & -100 & 48 & 104 & 73 \\ \hline \end{tabular}

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