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 Earnings before interest, taxes, depreciation, and anortization (EBITDA) Depreciation Pretax profit Tax at 40% 78 90 105 110 30 40 45 50 66 40 50 60 16 20 24 24 Investment 9 12 15 17 From year 5 onward, EBITDA, depreclation, 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 11%, its debt yields 7 % , 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.) Total value million b. What is the value of Laputa's equity? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) million Laputa's equity 5 of 5 Next Prev