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 Earnings before interest, taxes, depreciation, and amortization (EBITDA)$71 $91 $106 $111 Depreciation 11 21 26 31 Pretax profit 60 70 80 80 Tax at 40% 24 28 32 32 Investment 8 11 14 16

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 20%, its debt yields 6%, and it pays corporate tax at 40%.

a. Estimate the companys total value. (Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.)

b. What is the value of Laputas equity? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

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: 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 \20, its debt yields \6, and it pays corporate tax at \40. a. Estimate the company's total value. (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? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)