Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions): Book-Value Balance Sheet $ 50 50 $ 100 Net working capital Long-term assets Market-Value Balance Net working capital Long-term assets $ 50 200 $ 250 a. PV tax shield b. WACC c. New value of the firm Debt Equity Sheet Debt Equity $ Assume that MM's theory holds except for taxes. There is no growth, and the $70 of debt is expected to be permanent. Assume a 21% corporate tax rate. a. How much of the firm's value is accounted for by the debt-generated tax shield? Note: Enter your answer in million rounded to 2 decimal places. b. What is United Frypan's after-tax WACC if rpebt = 7.4% and rEquity = 15.68? Note: 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 after a grace period of 5 years. What will be the new value of the firm, other things equal? Assume an 7.4% borrowing rate. Note: Do not round intermediate calculations. Enter your answer in million rounded to 2 decimal places. $ 70 30 $ 100 14.70 million 15.01 % $ 70 180 $ 250 million