Here are book and market value balance sheets of the United Frypan Company (UF): Book Value Balance Sheet Networking capital $110 $130 Debt Long term assets 170 150 Equity $280 $280 Market Value Balance Sheet Networking capital $110 $130 Debt Long term assets 230 210 Equity $340 $340 Assume that MM's theory holds with taxes. There is no growth and the $130 of debt is expected to be permanent. Assume a 40% corporate tax rate, 6. How much of the firm's value in dollar terms is accounted for by the debt-generated tax shield? PV tax steld b. How much better off will UF's shareholders be if the firm borrows $110 more and uses it to repurchase stock? Increase in equity value