Question: I need help to solve these questions Help Save & Exit Submit You need to estimate the value of Laputa Aviation. You have the following

 I need help to solve these questions Help Save & Exit

Submit You need to estimate the value of Laputa Aviation. You have

the following forecasts (in millions of dollars) of its profits and of

I need help to solve these questions

Help Save & Exit Submit 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: 14 Year Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Pretax profit Tax at 40% Investment 72 92 107 112 12 22 27 32 60 70 80 80 kipped 20 23 26 28 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 19%, its debt yields 10%, and it pays corporate tax at 40%. o. Estimate the company's total value. (Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole dollar amount.) Total value million at is the value of Laputa's equity? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal b. Wh places.) Laputa's equity million

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