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Suppose Alcatel - Lucent has an equity cost of capital of 1 0 % , market capitalization of $ 1 0 . 8 0 billion

Suppose Alcatel-Lucent has an equity cost of capital of 10%, market capitalization of $ 10.80billion, 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. Alcatel-Lucent's WACC is _________%(Round to two decimal places.)
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 of: Initial investment (-100) Year 1(50) Year 2(100) and year 3(70). The NPV of the project is $_________ million. (rounded to two decimal places.)
c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)? The debt capacity of the project is as follows: (Round to two decimal places) Year 0? Year 1? Year 2? Year 3?

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