Flatworld Airlines Inc. is expected to generate free cash flow of $308.834 million at the end of the year. Analysts expect Flatworld's cash flows to grow in perpetuity at the rate of 2.5%. Flatworld has debt worth $1,667.67 million. The annual coupon rate is 8% and the yield on the bonds is also 8%. Flatworld's debt-to-value ratio is 40% and management plan to maintain that ratio in perpetuity. Flatworld's stockholders require a return of 13%. The tax rate is 34%. Use this information to answer the questions that follow.

Part 1

What is free cash flow to equity? Express your answer in millions of dollars rounded to one decimal place.

Free cash flow to equity = $M

Question 2

Part 2

What is the value of the equity using the FCFE approach? Express your answer in millions of dollars rounded to one decimal place.

Value of equity = $M

Question 3

Part 3

What is the value of the equity using the DCF/WACC approach? Express your answer in millions of dollars rounded to one decimal place.

Value of equity = $M