Return 6 Here are book and market value balance sheets of the United Frypan Company (UF: 5 Doints Took Value Balance Sheet Net working capital $200 $220 Debt Long-term assets 260 240 Equity $460 $460 Market Value Balance Sheet Net working capital $200 $220 Debt Long-term assets 320 300 quity $520 $520 Assume that MM's theory holds with taxes. There is no growth and the $220 of debt is expected to be permanent. Assume a 35% corporate tax rate. a. How much of the firm's value in dollar terms is accounted for by the debt-generated tax shield? Answer is complete but not entirely correct. PV tax shield 76 a. How much of the firm's value in dollar terms is accounted for by the debt-generated tax shield? 5 points Answer is complete but not entirely correct. PV tax shield $ 76 b. How much better off will UPs shareholders be if the firm borrows $200 more and use it to repurchase stock? Answer is complete but not entirely correct. Increase in equity value