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please see parts a-c Suppose Alcatel-Lucent has an equity cost of capital of 10.3%, market capitalization of $9.36 bilion, and an enterprise value of S13
please see parts a-c
Suppose Alcatel-Lucent has an equity cost of capital of 10.3%, market capitalization of $9.36 bilion, and an enterprise value of S13 bilion. Suppose AlcateL-Lucenfs debt cost of capital is 6.8% and its marginal tax rate is 35%. a. What is Alcatel-Lucenits WACC? b. If Alcatel-Lucent maintains a conitant 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)? Data table (Click on the following icon D. in order to copy its contents into a spreadsheet) Step by Step Solution
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