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Here are books and marketsvalue balance sheets otthe United Frypan Company [figures in S millions): BookVolue Boldnce Sheet Net working capital 15 43 Debt Lo
Here are books and marketsvalue balance sheets otthe United Frypan Company [figures in S millions): BookVolue Boldnce Sheet Net working capital 15 43 Debt Lo "lg-term assets 63 Equity 3; loo Morkel-Volue Balance Sheet Net working capital 3; 43 Debt Lo "lg-term assets lBD Equity 3% 220 as so 40 1; i no 1; so l so a; 22-3 Assume that MM's theory holds except for taxes. There is no growth. and the $60 ofdebt is expected to be permanent Assume a 21% corporate tax rate a. How much ofthe firm's market value is accounted for by the debt-generated tax shield? (Enter your answer in million rounded to 2 decimal places.) b. What is United Frypan's atterstax WACC if \"Debt = 7.6% and ram\
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