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Suppose Alcatel-Lucent has an equily cost of capital of 9.1%, market capitaliation of $10.22 billion, and an enterprise value of $14 billion. Suppose Acatel.Lucent's debt

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Suppose Alcatel-Lucent has an equily cost of capital of 9.1%, market capitaliation of $10.22 billion, and an enterprise value of $14 billion. Suppose Acatel.Lucent's debt cest of capital is 5.7% a ins marginal tax rate is 36%. a. What is Acatel-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, 6. If Acatel-Lucent maintains its debl-eguity ratio, what is the dobt capacity of the project in part (b)? a. What is Alcatel-Lucent's WACC? Alatel Lucent's WACC is 14. (Round to two decimal places.) \begin{tabular}{lcccc} Year & 0 & 1 & 2 & 3 \\ \hline FCF (\$ million) & -100 & 51 & 101 & 70 \\ \hline \end{tabular}

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