Next Seven Questions: Icarus Airlines is proposing to go public. Management plans to maintain debt at 30% of the company's present value, and they believe that at this capital structure the company's debt holders will demand a return of 6% and stockholders will require 11%. The company is forecasting that next year's cash flow will be $68 million. Afterwards, from year two until year five, the cash flow will grow by 4% a year. After year five, the growth rate will be zero. The tax rate is 40%. Find the proceeds from sale. Select one: O a. $881 million O b. $1,090 million O c. $590 million O d. $286 million Find the value of the debt to be paid. Select one: O a. $264 million O b. $340 million O c. $179 million O d. $617 million Find the value of equity. Select one: a. $1,145 million O b. $859 million O c. $617 million O d. $715 million Next Seven Questions: Icarus Airlines is proposing to go public. Management plans to maintain debt at 30% of the company's present value, and they believe that at this capital structure the company's debt holders will demand a return of 6% and stockholders will require 11%. The company is forecasting that next year's cash flow will be $68 million. Afterwards, from year two until year five, the cash flow will grow by 4% a year. After year five, the growth rate will be zero. The tax rate is 40%. Find the proceeds from sale. Select one: O a. $881 million O b. $1,090 million O c. $590 million O d. $286 million Find the value of the debt to be paid. Select one: O a. $264 million O b. $340 million O c. $179 million O d. $617 million Find the value of equity. Select one: a. $1,145 million O b. $859 million O c. $617 million O d. $715 million