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 $23\%$ of the

company's present value, and you believe that at this capital structure the

company's debtholders will demand a return of $5\%$ and stockholders will require

$12\%.$ The company is forecasting that next year's operating cash flow $($depreciation

plus profit after tax at $21\%)$ will be $$61$ million and that investment in plant and net

working capital will be $$23$ 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.