Spartan Corp. currently has no debt. Its market capitalization is $780 million, and its average tax rate is 34%. The company wants to borrow $273 million to repurchase shares. The debt will have an interest rate of 6.3% and will be kept constant forever.

What is the present value of all future annual interest tax shields (in $ million)?

What is the new value of the firm (in $ million)?

What will be the debt/equity ratio after the restructuring?