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

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You need to estimate the value of Laputo Aviation. You have the following forecasts (in millions of dollars) of its profits and of its future investments in new plant and working capital: TANT 125 Earnings before interest, taxes, depreciation, and asortiration EBITDA) Depreciation Pretax profit Tax at 40 Investment 103 35 70 20 17 25 60 24 10 120 40 30 32 20 30 22 From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year 4 levels. Laputo is financed 50% by equity and 50% by debt. Its cost of equity is 16%, 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 decim places.) Laputa's equity million

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