Problem $13-25$ Company Valuation $($LO$5)$

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:

From year $5$ onward, EBITDA, depreciation, and investment are expected to remain unchanged at year$-4$ levels. Laputa is financed $50\%$ by equity and $50\%$ by debt. Its cost of equity is $17\%,$ its debt yields $8\%,$ and it pays corporate tax at $30\%.$

a$.$ Estimate the company's total value.

Note: Do not round Intermedlate coleulatlons. Enter your answer in millions rounded to the neerest whole amount.

b$.$ What is the value of Laputa's equity?

Note: Do not round Intermedlate colculatlons. Enter your answer in millions rounded to the nearest whole amount.

$\backslash$table$[[$a$.$ Total value,$],[$b$.$ Laputa's equity,$]]$