Here are book- and market value balance sheets of the United Frypan Company Book-Value Balance Sheet Net working capital Long-term assets 25 Debt 75 Equity $ 60 40 $ 180 s 100 Market-Value Balance Shee Net working capital Long term assets 25 Debt 180 Equity S 60 145 $ 205 $ 205 Assume that MM's theory holds except for taxes. There is no growth, and the $60 of debt is expected to be permanent. Assume a 33% corporate tax rate