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 35% of the company’s present value, and you believe that at this capital structure the company’s debtholders will demand a return of 5% and stockholders will require 12%. The company is forecasting that next year’s operating cash flow (depreciation plus profit after tax at 40%) will be $73 million and that investment expenditures will be $35 million. Thereafter, operating cash flows and investment expenditures are forecast to grow in perpetuity by 4% a year.
What is the total value of Icarus (in millions)?
What is the value of the company's equity? (Do not round intermediate calculations. Enter answer in millions rounded to 1 decimal place.)