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 25% of the companys present value, and you believe that at this capital structure the companys debtholders will demand a return of 7% and stockholders will require 14%. The company is forecasting that next years operating cash flow (depreciation plus profit after tax at 21%) will be $63 million and that investment in plant and net working capital will be $25 million. Thereafter, operating cash flows and investment expenditures are forecast to grow in perpetuity by 4% a year.

1. What is the total value of Icarus?
2. What is the value of the companys equity?

Note: For all the requirements, do not round intermediate calculations. Enter your answers in dollars rounded to 2 decimal places.