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pls solve step by step all parts ill like Suppose Alcatel-Lucent has an equity cost of capital of 10%, market capitalization of $10.8 billion, and
pls solve step by step all parts ill like
Suppose Alcatel-Lucent has an equity cost of capital of 10%, market capitalization of $10.8 billion, and an enterprise value of \$14.4 billion. Suppose Alcatel-Lucent's debt cost of capital is 6.1% and its marginal tax rate is 35%. 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 following expected free cash flows? c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part b
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