Here are book- and market value balance sheets of the United Frypan Company (figures in $ millions): Debt $ 60 Book-Value Balance Sheet Net working capital $ 50 Long-term assets 50 Equity $ 100 40 $ 100 Market-Value Balance Sheet Net working capital $ 50 Debt Long-term assets 205 Equity $ 255 60 195 $ 255 Assume that MM's theory holds except for taxes. There is no growth, and the $60 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 = 7.2% and rEquity = 15.8%? (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 7.2%. (Do not round intermediate calculations. Enter your answer in million rounded to 2 decimal places.) a. PV tax shield b. WACC New value of the firm million % C. million