Here are book and market value balance sheets of the United Frypan Company (UF): Book Value Balance Sheet Networking capital $120 $140 Debt Long-term assets 180 160 Equity $300 $3ee Market Value Balance Sheet Net working capital $120 $140 Debt Long-term assets 240 220 Equity $360 $360 Assume that MM's theory holds with taxes. There is no growth, and the $140 of debt is expected to be permanent. Assume a 35% corporate tax rate a. How much of the firm's value in dollar terms is accounted for by the debt-generated tax shield? PV tax Shield b. How much better off will UF's shareholders be if the firm borrows $120 more and uses it to repurchase stock? Increase in equity value