pm.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 futureinvestments in new plant and working capital:Earnings before interest, taxes, depreciation, and amortization (EBITDA)DepreciationPretax profitTax at 30%Investment1$ 8828601817Yeara. Total valueb. Laputa's equity2$ 108387021203$123438024234$ 12848802425From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed50% by equity and 50% by debt. Its cost of equity is 19%, its debt yields 10%, and it pays corporate tax at 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 Laputa's equity?Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.

Weight of debt = 50%Weight of equity =50%Cost of debt = 10%Cost of equity = 19%Tax rate = 30%Year…

You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its futur nvestments in new plant and working capital: Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Pretax profit Tax at 30% 1 $88 28 60 18 Year 2 $ 108 38 70 21 3 $123 43 80 24 4 $128 48 80 24