Juma is a smothie company in the jamaica . It has 80 million shares outstanding with a market price of $32 per share anthno debt. Jumba has had consistently stable earnings, and pays a 25% tax rate. Management plans to borrow $1 billion on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares. Disregard any costs of financial distress for this question, i.e., you can consider they are always zero.

What is the present value of debt tax shields created by the leveraged recapitalization operation?