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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 its future

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 1 2 3 4 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 89 $ 109 $ 124 $ 129 Depreciation 29 39 44 49 Pretax profit 60 70 80 80 Tax at 30% 18 21 24 24 Investment 18 21 24 26 From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 60% by equity and 40% by debt. Its cost of equity is 20%, its debt yields 6%, and it pays corporate tax at 30%. 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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