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 Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation $ 83 2 $ 103 3 4 $ 118 $ 123 23 33 38 43 Pretax profit 60 70 80 80 Tax at 30% 18 21 24 24 Investment 12 15 18 20 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 14%, its debt yields 10%, 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. Answer is complete but not entirely correct. a. Total value $ 670 b. Laputa's equity $ 402