Suppose Alcatel-Lucent has an equity cost of capital of 9%, market capitalization of $10.95 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's debt cost of capital is 7.3% and its marginal tax rate is 38%. 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 0, -100

year 1, 47

year 2, 105

year 3, 72

? c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)?