U DULJO answer to Quiz Question 4 24 Tax Shields and WACC. Here are book- and market value balance sheets of the United Frypan Company: BOOK-VALUE BALANCE SHEET Net working capital $ 20 Debt Long-term assets 80 Equity $ 100 webt $ 40 60 $ 100 MARKET-VALUE BALANCE SHEET Net working capital $ 20 Debt Long-term assets 140 Equity $ 160 $ 40 120 $ 160 MS theory holds except for taxes. There is no growth, and expected to be permanent. Assume a 35% corporate tax rate. ILVA 10 growth, and the $40 of debt is