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You need to estimate the value of Flying Vikings Aviation. You have the following forecasts On millions of dollars) of its profits and of its
You need to estimate the value of Flying Vikings Aviation. You have the following forecasts On millions of dollars) of its profits and of its future investments in new plant and working capital.From year onward, EBITDA, depreciation, and investment are expected to remain unchanged at year 4 levels. Flying Vikings is financed 50% by equity and 50% by debt. Its cost of equity is 15%, it debt has a yield to maturity of 7%, and it pays corporate tax at 40%. Revoked 1) Estimate the company's total value. 2) What the value of Flying Vikings equity? You need to estimate the value of Flying Vikings Aviation. You have the following forecasts On millions of dollars) of its profits and of its future investments in new plant and working capital.From year onward, EBITDA, depreciation, and investment are expected to remain unchanged at year 4 levels. Flying Vikings is financed 50% by equity and 50% by debt. Its cost of equity is 15%, it debt has a yield to maturity of 7%, and it pays corporate tax at 40%. Revoked 1) Estimate the company's total value. 2) What the value of Flying Vikings equity
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