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ou need to estimate the value of Laputa Aviation. You have the following forecasts ( in millions of dollars ) of its profits and of
ou 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:
Year
Earnings before interest, taxes, depreciation, and amortization EBITDA $ $ $ $
Depreciation
Pretax profit
Tax at
Investment
From year onward, EBITDA, depreciation, and investment are expected to remain unchanged at year levels. Laputa is financed by equity and by debt. Its cost of equity is its debt yields and it pays corporate tax at
Estimate the companys total value.
Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.
What is the value of Laputas equity?
Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.
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