Here are book- and market-value balance sheets of the United Frypan Company:

Book-Value Balance Sheet

Net Workig Capital	$80	Debt	$55
Long-Term assets	$20	Equity	$45
	$100		$100

Market-Value Balance Sheet

Net working Capital	$80	Debt	$55
Long-term assets	$145	Equity	$170
	$225		$225

Assume that MMs theory holds except for taxes. There is no growth, and the $55 of debt is expected to be permanent. Assume a 37% 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 Frypans after-tax WACC if rDebt = 6.0% and rEquity = 17.0%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c. Now suppose that Congress passes a law that eliminates the deductibility of interest for tax purposes. What will be the new value of the firm, other things equal? Assume a borrowing rate of 55.0%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)