8 You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its future investments in new plant and working capital: ts eBook Print erences Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Pretax profit Tax at 30% Investment 1 $ 74 24 50 15 18 a. Total value b. Laputa's equity Year 2 $94 34 60 18 21 3 $109 39 70 21 24 4 $ 114 44 70 21 26 From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 50% by equity and 50% by debt. Its cost of equity is 17%, its debt yields 8%, and it pays corporate tax at 30%. a. Estimate the company's total value. Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. b. What is the value of Laputa's equity? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.

You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its futur investments in new plant and working capital: From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 50% by equity and 50% by debt its cost of equity is 17%, its debt yields 8%, and it pays corporate tox at 30%. a. Estimate the company's total value. Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. b. What is the value of Loputa's equity? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount