Suppose alcatel-lucent has an equity cost of capital of 104, Ask an Expert

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Suppose? Alcatel-Lucent has an equity cost of capital of 10.4 % ?, market capitalization of $ 10.22 ?billion, and an enterprise value of $ 14.0 billion with a debt cost of capital of 5.9 % 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 following expected free cash? flows? Year 0 1 2 3 FCF ?($ million) negative 100 45 105 75 c. If? Alcatel-Lucent maintains its? debt-equity ratio, what is the debt capacity of the project in part ?(b?)?

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Financial Management, Finance

Category:- Financial Management
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