Here are book and market value balance sheets of the United Frypan Company (figures in $ millions): Book-Value Balance Sheet Net working capital $ 20 Debt 70 Long-term assets B@ Equity $ 100 $ 100 30 Market Value Balance Sheet Net working capital $ 20 Debt Long-term assets 175 Equity $ 195 70 125 $ 195 Assume that MM's theory holds except for taxes. There is no growth, and the $70 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 = 6,6% and requity = 16.4%? (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 6.6%. (Do not round intermediate calculations. Enter your answer in million rounded to 2 decimal places.) b. PV tax shield WACC New value of the firm million % million G