4 115 Earnings before interest taxes depreciation, and amortization Tax at 40% Cash Flow from Capital Investments and Working Captal from years onward, EMTDA depreciation, capital investment and working capitalinvestment are its xpected to remain unc hanged at year 4 levels. Laputa is fnanced son, by equity and son by debt cost of equity is 15% its debt vields 7% and it pays corporate tax at40% a. Estimate the company's total value b. what is the value of Laputa's equity? 4. NEXTRA) Look at the following book value balance sheet for University Products Inc. The preferred stock currently sells for $15 per share and pays a dividend of S2 a share. The common stock sells for S20 per share and has a beta of08 The market risk premium is 10% the risk-free rate is 6% and the firm's tax rate is 40%. a What is the market debt-to-value ratio of the firm? BOOK VALUE BALANCE SHEET Figures in S milions) Liabilities and Net Worth S1 Bonds coupon B%, paid annually (maturity 10 years, current yield to maturity 9%) Preferred stock (100 000 shares outstandingi Common stock (1 millon shares outstandngi