Here are book- and market value balance sheets of the United Frypan Company (figures in $ millions): Book-Value Balance Sheet Net working capital $ 25 Debt Long-term assets 75 Equity $ 100 $ 60 40 100 $ Market-Value Balance Sheet Net working capital $ 25 Debt Long-term assets 180 Equity $ 205 $ 60 145 $ 205 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 = 6.7% and Equity = 16.3%? (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 6.7%. (Do not 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