Determine the equity value of the following scenario, assuming there is no end to the timeline and the following data:
Cost of equity = 15.8%
Cost of debt = 7.95%
Debt = $579MM
Equity = $1,241MM
Tax rate = 40%
Long-term growth expectations = 3.5%
Future Equity Cash Flows (FCFE) are forecast as follows:
Year 0: n/a
Year 1: 124
Year 2: 151
Year 3: 166
Year 4: 178
Year 5: 184
(Round your answer to the nearest cent)