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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

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
1234
Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 75 $ 95 $ 110 $ 115
Depreciation 15253035
Pretax profit 60708080
Tax at 30%18212424
Investment 17202325
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 16%, its debt yields 7%, and it pays corporate tax at 30%.
Estimate the companys total value.
Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.
What is the value of Laputas equity?
Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.

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