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 21% of the company's present value, and you believe that at this capital structure the company's debtholders will demand a return of 7% and stockholders will require 14%. The company is forecasting that next year's operating cash flow (depreciation plus profit after tax at 21%) will be $59 million and that Investment in plant and net working capital will be $21 million. Thereafter, operating cash flows and Investment expenditures are forecast to grow in perpetuity by 4% a year. a. What is the total value of Icarus? b. What is the value of the company's equity? Note: For all the requirements, do not round intermediate calculations. Enter your answers in dollars rounded to 2 decimal places. Answer is complete but not entirely correct. a. Total value $ 462.21 b. Company's equity $ 365.15 x