Suppose Alcatel-Lucent has an equity cost of capital of 9%, market capitalization of $10.35 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's debt cost of capital is 5.5% and its marginal tax rate is 35%. a. What is Alcatel-Lucent's WACC? b. If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average risk and the expected free cash flows as shown here, E ? c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)? 0 1 Year FCF ($ million) 2 3 73 100 45 102