Suppose Alcatel-Lucent has an equity cost of capital of 10.5%, market capitalization of $10.80 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's debt cost of capital is 5.5% and its marginal tax rate is 34%. 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, ? c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)? a. What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC is 8.57 %. (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 as shown here, ? The NPV of the project is $ 84.60 million. (Round 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 in part (b) is as follows: (Round to two decimal places.) 0 1 2 3 Year Debt capacity $ million $ million million $ million (Click on the following icon in order to copy its contents into a spreadsheet.) 1 2. 3 Year FCF ($ million) 0 - 100 50 97 72 Print Done Suppose Alcatel-Lucent has an equity cost of capital of 10.5%, market capitalization of $10.80 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's debt cost of capital is 5.5% and its marginal tax rate is 34%. 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, ? c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)? a. What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC is 8.57 %. (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 as shown here, ? The NPV of the project is $ 84.60 million. (Round 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 in part (b) is as follows: (Round to two decimal places.) 0 1 2 3 Year Debt capacity $ million $ million million $ million (Click on the following icon in order to copy its contents into a spreadsheet.) 1 2. 3 Year FCF ($ million) 0 - 100 50 97 72 Print Done