Here are book and market value balance sheets of the United Frypan Company $($UF$)$:

Book Value Balance Sheet

Net working capital $ $130$ $ $150$ Debt

Long$-$term assets $190170$ Equity

$ $320$ $ $320$

Market Value Balance Sheet

Net working capital $ $130$ $ $150$ Debt

Long$-$term assets $250230$ Equity

$ $380$ $ $380$

Assume that MM$\text{'}$s theory holds with taxes. There is no growth, and the $$150$ of debt is expected to be fixed and permanent. Assume a $40\%$ corporate tax rate.

How much of the firm$$s value in dollar terms is accounted for by the debt$-$generated tax shield?

How much better off will UF's shareholders be if the firm borrows $$130$ more and uses it to repurchase stock?