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You need to estimate the value of Loputa Avation. You have the following forecasts (in millions of dollars) of its profits and of its future
You need to estimate the value of Loputa Avation. 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 unchonged at year 4 lovels, Loputa is financed 60% by equity and 40% by debt. Its cost of equity is 14%, its debt yieids 10%, and it pays corporate fax ot 30%. a. Estimate the company's total value Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. b. What is the value of Loputa's equity? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount
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