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 31% of the company's present value, and you believe that at this capital structure the company's debt holders 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 40%) will be $69 million and that investment in plant and net working capital will be $31 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? round to 4 digits please

b.What is the value of the company's equity? round to 4 digits please