If alcatel-lucent maintains its debt-equity ratio what is


Suppose Alcatel-Lucent has an equity cost capital of 10.3%, market capitalization of $10.35 billion, and an enterprise value of $15.0 billion with a debt cost of capital of 7.2% and its marginal tax rate is 32%. (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 and the following expected free cash flows? Year---0----1----2---3 FCF(-100)--46--102---75.,What is the NPV? (c) If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)? Round all answer to two decimal places

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Financial Management: If alcatel-lucent maintains its debt-equity ratio what is
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