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Suppose? Alcatel-Lucent has an equity cost of capital of 10

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Suppose? Alcatel-Lucent has an equity cost of capital of 10.4%?, market capitalization of $11.04 ?billion, and an enterprise value of $16 billion. Suppose? Alcatel-Lucent's debt cost of capital is 6% and its marginal tax rate is 37%.

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,

Data Table

Year 0 1 2 3

FCF ($MILLION) -100 54 95 73

.

?

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