Here are book and market value balance sheets of the United Frypan Company (UF):

Book

Net working capital	$ 210		$ 230	Debt
Long-term assets	270		250	Equity
	$480		$480

Market

Net working capital	$ 210		$ 230	Debt
Long-term assets	330		310	Equity
	$540		$540

Assume that MM's theory holds with taxes. There is no growth, and the $230 of debt is expected to be permanent. Assume a 40% corporate tax rate.

a.	How much of the firm's value 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 $210 more and uses it to repurchase stock?

Increase in debt

$