Suppose Alcatel-Lucent has an equity cost of capital of 10.7%, market capitalization of $9.36 billion, and an enterprise value of $13 billion. Suppose Alcatel-Lucent's debt cost of capital is 6.2% and its marginal tax rate is 36%. 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, E? 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 8.82 %. (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, E? The NPV of the project is $ 81.07 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.) 1 2 3 Year Debt capacity $ million million $ million $ million Suppose Alcatel-Lucent has an equity cost of capital of 10.7%, market capitalization of $9.36 billion, and an enterprise value of $13 billion. Suppose Alcatel-Lucent's debt cost of capital is 6.2% and its marginal tax rate is 36%. 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, E? 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 8.82 %. (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, E? The NPV of the project is $ 81.07 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.) 1 2 3 Year Debt capacity $ million million $ million $ million