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Suppose Alcatel-Lucent has an equity cost of capital of 9.6%, market capitalization of $10.35 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's debt

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Suppose Alcatel-Lucent has an equity cost of capital of 9.6%, market capitalization of $10.35 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's debt cost of capital is 6.5% 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, EFF ? 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 |%. (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, EFF ? The NPV of the project is $ 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.) Year 0 2 3 Debt capacity $ million million S million s millionData Table X (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year O 2 FCF ($ million) - 100 53 95 75 Print Done

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