Company Valuation - Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity.Management plans to maintain debt at 30% of the company's present value, and you believe that at this capital structure the company's debtholders will demand a return of 6% and stockholders will require 11%.The company is forecasting that next year's operating cash flow (depreciation plus profit after tax at 40%) will be $68 million.And that investment expenditures will be $30 million.Thereafter, operating cash flows and investment expenditures are forecast to grow in perpetuity by 4% a year.(L013-5).

A) What is the total value of Icarus?

B) What is the value of the company's equity?