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 39% of the companys present value, and you believe that at this capital structure the companys debt holders will demand a return of 5% and stockholders will require 12%. The company is forecasting that next years operating cash flow (depreciation plus profit after tax at 40%) will be $77 million and that investment in plant and net working capital will be $39 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? (Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole dollar amount.)

total value___________million

b. What is the value of the companys equity? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.)

company's equity __________million