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MY HOMEWORK IS TIMED please answer as soon as possible; thanks. Suppose Alcatel-Lucent has an equity cost of capital of 9.7%, market capitalization of $8.97

MY HOMEWORK IS TIMED please answer as soon as possible; thanks.

Suppose Alcatel-Lucent has an equity cost of capital of 9.7%, market capitalization of $8.97 billion, and an enterprise value of $13 billion. Suppose Alcatel-Lucent's debt cost of capital is 6.8% and its marginal tax rate is 38%.

a.What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC % is?

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 below. The NPV of the project is -- $ millions.

c.If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b) is? (From year 0-3)

YearFCF ($Million)

0-100

147

297

369

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