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Suppose Alcatel - Lucent has an equity cost of capital of 1 0 . 1 % , market capitalization of $ 9 . 3 6

Suppose Alcatel-Lucent has an equity cost of capital of 10.1%, market capitalization of $ 9.36billion, and an enterprise value of $ 13 billion. Suppose Alcatel-Lucent's debt cost of capital is 6.7% and its marginal tax rate is 37%.
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
Year 0123
FCF ($ million)-100479772
c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)?

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