BRK has grown by acquiring entire companies or by purchasing a large equity stake in others. BRK has excess cash. How would the value of BRK have changed if BRK had issued $25 billion ($25,000 in millions of $) in debt to purchase PCC, with a personal tax rate of 20% on debt income and a personal tax rate of 10% on equity income? (You may calculate a purchase price of more than $25 billion, but only look at an issuance of $25 billion in debt) Assume that BRK requires an unlevered return of 15%. Calculate the value of BRK as a levered firm (using the Miller model in section 15.4 in the textbook) compared to an unlevered firm. Explain the Modigliani & Miller theorem on an unlevered and a levered firm. Do you recommend that BRK borrow for the interest tax shield? Do you recommend BRK buy PCC using cash or by issuing debt? Why