O 10 points 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: Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Pretax profit Tax at 30% Investment Answer is complete but not entirely correct. a. Total value b. Laputa's equity 1 $81 $ 21 60 18 10 893 X 224 X Year 2 $ 101 31 70 From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 40% by equity and 60% by debt. Its cost of equity is 12%, its debt yields 8%, and it pays corporate tax at 30%. 21 13 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. 3 $ 116 36 80 24 16 4 $ 121 41 80 24 18

You need to estimate the value of Laputa Aviation, You have the following forecasts (in millions of dollars) of its protits and of its future investments in new plant and working capitat From year 5 onward, EBITDA, depreclation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 40% by equity and 60% by debt. its cost of equity is 12%, 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