Question: I need help with part B, I know how to calculate the VL for Year 0, but stuck with the calculation for year1, Year2 and

I need help with part B, I know how to calculate the VL for Year 0, but stuck with the calculation for year1, Year2 and year3. I know the VL for year is $1867.69, but do get the VL for year1, 2, and 3?

SupposeAlcatel-Lucent has an equity cost of capital of 10.5 % 10.5%, market capitalization of $ 10.50 $10.50 billion, and an enterprise value of $ 15 $15 billion. SupposeAlcatel-Lucent's debt cost of capital is 7.4 % 7.4% and its marginal tax rate is 33 % .

a. What isAlcatel-Lucent's WACC?

b. IfAlcatel-Lucent maintains a constantdebt-equity ratio, what is the value of a project with average risk and the expected free cash flows as shownhere, LOADING...

c. IfAlcatel-Lucent maintains itsdebt-equity ratio, what is the debt capacity of the project in part (b)?

I need help with part B, I know how to calculate the VL for Year 0, but stuck with the calculation for year1, Year2 and year3.

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