Suppose Alcatel-Lucent has an equity cost of capital of 9.4%, market capitalization of $9.49 billion, and an enterprise value of $13 billion. Suppose Alcatel-Lucent’s debt cost of capital is 7.1% and its marginal tax rate is 35%.
a. What is Alcatel-Lucent’s WACC?
b. If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average risk and the following expected free cash flows?
Year 0 1 2 3
FCF ($ million) -100 52 100 65
c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)?
Which preconditions have to be fulfilled in the following exercise that i can apply a z-test and are they actually fulfilled? TIAThe Chief Executive Officer of Dunkley Di...Apr 06 2020
Three reactions between a Grignard reagent and a carbonyl compound are given below. What are the main organic products for each reaction? Indicate if or is needed to co...May 18 2021
If the social cost of producing a good or service exceeds the private costA. A negative externality exists.B. The market achiever's economic efficiency.C. The sum of cons...Jun 12 2021
Cost-hierarchy income statement and allocation of corporate, division, and channel costs to customers. Vocal Speakers makes wireless speakers that are sold to different c...Jul 16 2020
S Extra credit problem 2. Calculate the surface integral SS Fds, where S is cylinder x2 + y2 = 1,0 5252, including circular top and bottom, and 23 33 – sin(xz), 2 – X – Y...Apr 13 2021
What government agency compiles the U.S NIPA Tables? a) Centre for Economic Accounting b) Bureau of Economic Analysis c) Centre for Government Analysis d) Bureau of Gover...Jun 02 2021
The bank statement shows an ending balance of $34,351. Theunadjusted cash account balance per the books was $28,350. Usingthe below information, what is the true cash bal...Jun 04 2021
Consider your daily life What are some of the everyday elements that would be different if we today were still under a state-focused document like the Articles of Confede...Jun 15 2020
When an employer denies an employee (or a group of employees) his or her full employment opportunity based on the racial bias of customers, is the employer violating the ...Jul 09 2020
a) Plot the above data on a graph. Do you observe any trend, cycles, or random variations?b) Starting in year 4 and going to year 12, forecast demand using a 3-year movin...Jul 31 2020