can you please resolve a, b and c

21 1 AaBbCcDdEe AaBbCcDdEe AaBbCcDc Aabbccdet AaE Normal No Spacing Heading 1 Heading 2 Titic Book-Value Balance Sheet Net working capital $ 35 Debt Long-term assets 65 Equity $ 100 $ 55 45 $ 100 Market-Value Balance Sheet Net working capital $ 35 Debt Long-term assets 170 Equity $ 205 $ 55 150 $ 205 Assume that MM's theory holds except for taxes. There is no growth, and the $55 of debt is expected to be permanent. Assume a 21% corporate tax rate. a. How much of the firm's market value is accounted for by the debt-generated tax shield? (Enter your answer in million rounded to 2 decimal places.) b. What is United Frypan's after-tax WACC if (Debt = 7.7% and Equity = 15.3%? (DO not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. Now suppose that Congress passes a law that eliminates the deductibility of Interest for tax purposes after a grace period of 5 years. What will be the new value of the firm, other things equal? Assume a borrowing rate of 7.7%. (Do not DE round intermediate calculations. Enter your answer in million rounded to 2 decimal places.) million b. PV tax shield WACC New value of the firm % million c