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You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its

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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. Assume working capital is zero. Year 1 2 3 4 Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation $ 88 $ 108 $ 123 $ 128 28 38 43 48 EBIT Investment 60 70 80 80 17 20 23 25 From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 50% by equity and 50% by debt. Its cost of equity is 19%, 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 rounded to the nearest whole dollar amount. b. What is the value of Laputa's equity? Note: Do not round intermediate calculations. Enter your answer in rounded to the nearest whole dollar amount. a. Total value b. Laputa's equity

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