You need to estimate the value of BCCI. You have the following forecasts (in millions of dollars) of Buildwell's earnings and of its future investments in new plant and working capital:

From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Estimate the company's total value and the separate values of its debt and equity.

Transcribed Image Text:

Year 4... Earnings before interest, taxes, depre- ciation, and amortization (EBITDA) 115 80 100 120 Depreciation 30 35 40 EBIT 80 80 60 70 Investment in plant and working capital 12 15 18 20 2.