P18-10 (similar to) Question Help Suppose Alcatel-Lucent has an equity cost of capital of 10,8%, market capitalision of $10.35 billion, and an enterprise value of billion. Assume that Alcatel-Lucent's debt cost of capital is 6.2%, marginal tax rate is 30%, the WACC IS 8 6430% and maintains a constant debt uity ratio. The firm has a project with average risk. The expected free cash flow levered value and debt capacity are as follows . Thus, the NPV of the project called using the WACC method is $180.08 milion - 100 milion $80.00 min a. What is Alcatel Lucent's unlevered cost of capital? b. What is the revered value of the project? c. What are the interest tax shields from the project? What is their present value? d. Show that the APV of Alcatel-Lucents project manches the value computed using the WACC method a. What is Alcatel-Lucent's revered cost of capital? Alcatel-Lucents unlevered cost of capitalism (Round to four decimal places.) ound to four decimal places i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year FCF ($ million) - 100 67 45 150.65 46.70 180.08 55.82 102 61.67 19.12 0.00 D=dx V 0.00 Print Done P18-10 (similar to) Question Help Suppose Alcatel-Lucent has an equity cost of capital of 10,8%, market capitalision of $10.35 billion, and an enterprise value of billion. Assume that Alcatel-Lucent's debt cost of capital is 6.2%, marginal tax rate is 30%, the WACC IS 8 6430% and maintains a constant debt uity ratio. The firm has a project with average risk. The expected free cash flow levered value and debt capacity are as follows . Thus, the NPV of the project called using the WACC method is $180.08 milion - 100 milion $80.00 min a. What is Alcatel Lucent's unlevered cost of capital? b. What is the revered value of the project? c. What are the interest tax shields from the project? What is their present value? d. Show that the APV of Alcatel-Lucents project manches the value computed using the WACC method a. What is Alcatel-Lucent's revered cost of capital? Alcatel-Lucents unlevered cost of capitalism (Round to four decimal places.) ound to four decimal places i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year FCF ($ million) - 100 67 45 150.65 46.70 180.08 55.82 102 61.67 19.12 0.00 D=dx V 0.00 Print Done