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 $30\%$ of the company's present value, and you believe that at this capital structure the company's debtholders will demand a return of $6\%$ and stockholders will require $11\%.$ The company is forecasting that next year's operating cash flow $($depreciation plus profit after tax at $21\%)$ will be $$68$ million and that investment in plant and net working capital will be $$30$ 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.

Answer is complete but not entirely correct.

$\backslash$table$[[$a$.$ Total value,$$,742$; b$.$ Company's equity $$519$