Here are book-and market value balance sheets of the United Frypan Company: Net working capital Long-term assets Book-Value Balance Sheet 20 Debt 80 Equity $ 100 $ 40 60 $ 100 Net working capital Long-term assets Market Value Balance Sheet $ 20 Debt 140 Equity $ 160 $ 40 120 $ 160 Assume that MM's theory holds except for taxes. There is no growth and the $40 of debt is expected to be permanent. Assume a 35% corporate tax rate. a. How much of the firm's value is accounted for by the debt-generated tax shield? PV tax shield $ b. What is United Frypan's after-tax weighted average cost of capital (WACC)? (Round your answer to 2 decimal places.) WACC c. Now suppose that Parliament 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 being equal? Assume an 8% borrowing rate. (Round your answer to 2 decimal places.) New value of the firm $