here are book and market value balance sheets of the United frypan company: book value balance sheet net working capital $55 debt $75 long-term assets 45 equity 25 $100 $100 market value balance sheet net working capital $55 debt $75 long-term assets 210 equity 190 $265 $265 assume that mm's theory holds except for taxes. there is no growth, and the $75 of debt is expected to be permanent. Assume a 33% corporate tax rate. a. How much of the firm's market value is accounted for by the debt generated tax shield? b. what is united frypan's after-tax wacc if rdebt=7.3% and r equity = 15.7% How much is the firms market value is accounted for by the debt generated tax shield? (PV tax shield is 24.75). What is Frypans after-tax WACC of R debt = 7.3% and R equity=15.7%? (12.64%). 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 7.3%