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.