QUESTION 1 2 points Save Answer Below are book- and market value balance sheets of Company X (figures in $ millions): Book-Value Balance Sheet Net working capital $50 Debt $60 Long-term assets $50 Equity $40 $100 $100 Market-Value Balance Sheet Net working capital $50 Debt $60 Long-term assets $205 Equity $195 $255 $255 Assume that there is no growth, and the $60 of debt is expected to be permanent. Also, assume a 21% corporate tax rate. a. How much of the firm's market value is accounted for by the debt-generated tax shield? (Enter your answer in millions rounded to 2 decimal places, do not use ($), (m) or () signs.) b. Now suppose that Congress passes a law that eliminates the deductibility of interest for tax purposes after a grace period of 5 years. What will be the new value of the firm, other things equal? Assume a borrowing rate of 7.2%. (Do not round intermediate calculations, enter your answer in millions rounded to 2 decimal places, do not use (S), (m) or (.) signs