6. 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: Year 1 2 3 4 EBIT $110 $120 $140 $150 20 30 35 45 Depreciation CAPEX 15 25 30 40 From year 5 onward, EBIT, depreciation, and investment are expe to remain unchanged at year-4 levels. Laputa is financed 60% by equity and 40% by debt. Its cost of equity is 16%, its debt yields 8%, and it pays corporate tax at 21%. (Note that you are given EBIT, not EBITDA.) Estimate the company's total value. a. b. What is the value of Laputa's equity? 6. 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: Year 1 2 3 4 EBIT $110 $120 $140 $150 20 30 35 45 Depreciation CAPEX 15 25 30 40 From year 5 onward, EBIT, depreciation, and investment are expe to remain unchanged at year-4 levels. Laputa is financed 60% by equity and 40% by debt. Its cost of equity is 16%, its debt yields 8%, and it pays corporate tax at 21%. (Note that you are given EBIT, not EBITDA.) Estimate the company's total value. a. b. What is the value of Laputa's equity