Here are book- and market value balance sheets of the United Frypan Company (figures in $ millions): $ 80 Book-Value Balance Sheet Net working capital $ 30 Debt Long-term assets 70 Equity $ 100 $ 100 Market-Value Balance Sheet Net working capital $ 30 Debt Long-term assets 170 Equity $ 200 $ 80 120 $ 200 Assume that MM's theory holds except for taxes. There is no growth, and the $80 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 = 6.5% and Equity = 16.5%? (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 6.5%. (Do not round intermediate calculations. Enter your answer in million rounded to 2 decimal places.) $ 16.80 million PV tax shield WACC New value of the firm million