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) $ 84 $ 104 $ 119 $ 124 Depreciation 14 24 29 34 Pretax profit 70 80 90 90 Tax at 30% 21 24 27 27 Investment 13 16 19 21 From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 40% by equity and 60% by debt. Its cost of equity is 15%, its debt yields 6%, and it pays corporate tax at 30%.

Estimate the companys total value.

What is the value of Laputas equity?