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A company has interest expenses totaling = $ 7 2 2 MM , for which they pay 7 % / annum to their lender. Last

A company has interest expenses totaling = $722 MM, for which they pay 7%/annum to their lender. Last year, the company paid $827 MM in tax, based on earnings before taxes of $4,135M; what amount of additional taxes would the co. pay if they were all equity-financed (i.e., no debt) and what is the PV of tax shield (assume all metrics stay constant in perpetuity)?

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