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 $35\%$ 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$$s operating cash flow $($depreciation plus profit after tax at $21\%)$ will be $$73$ million and that investment in plant and net working capital will be $$35$ million. Thereafter, operating cash flows and investment expenditures are forecast to grow in perpetuity by $4\%$ a year.

What is the total value of Icarus?

What is the value of the company$$s equity?