P18-6 (similar to) Question Help Suppose Alcatel-Lucent has an equity cost of capital of 10.3%, market capitalization of $10.95 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's debt cost of capital is 6.8% and its marginal tax rate is 36%. a. What is Alcatel-Lucent's WACC? b. If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average risk and the expected free cash flows as shown here, ? c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)? X i Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) 0 1 2 3 Year FCF ($ million) 100 49 99 67 Print Done P18-6 (similar to) Question Help Suppose Alcatel-Lucent has an equity cost of capital of 10.3%, market capitalization of $10.95 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's debt cost of capital is 6.8% and its marginal tax rate is 36%. a. What is Alcatel-Lucent's WACC? b. If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average risk and the expected free cash flows as shown here, ? c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)? X i Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) 0 1 2 3 Year FCF ($ million) 100 49 99 67 Print Done