is the answer $149.11?

Here are book and market value balance sheets of the United Frypan Company: Book value balance sheet Assume that MM's theory holds with taxes. There is no growth and the $40 of debt is expected to be permanent. Assume a 40% corporate tax rate. a) How much of the firm's value is accounted for by the debt-generated tax shield if Congress passes a law which eliminates the deductibility of interest for tax purposes after a grace period of 5 years. (Assume an 8% borrowing rate.) Here are book and market value balance sheets of the United Frypan Compar Book value balance sheet Assume that MM's theory holds with taxes. There is no growth and the $40 is expected to be permanent. Assume a 40% corporate tax rate. a) How much of the firm's value is accounted for by the debt-generated ta if Congress passes a law which eliminates the deductibility of interest for ta: purposes after a grace period of 5 years. (Assume an 8% borrowing rate.)