A small firm earns $800/year, has 10% cost of debt. The firm has $4,000 in equity and $4,000 in debt. The tiny firm is worth $8,000, so each year pays $400 to bondholders and $400 in dividends. The firm is considering a project with a 50% chance of succeeding and earning $10,000 and a 50% chance of failing and losing $20,000 (and going bankrupt). What is the possible gain, possible loss, and expected return for both the equity and debt holders? Would the shareholders vote to take on this project? Would the shareholders vote to take on this project if it had a 75% chance of succeeding and a 25% chance of failing?