Capital structure tradeoff benefits and costs TK Implements is an unusulf company that will operate for one yoar, generate cash flow just once, and then shut expecled relum Induding princpal and interest, TK Implements will hove $1,670,000 worth of debt due at the end of the year. There are no taxes, and the cornpanys possiblo net operating profits for next year are $2,780,000(30% probability), $6,360,000 (45\%, probability), and $4,170,000(25% probability). a. Find the expected return on TK's debt? (Hint find the equity value first and subtract that from total firm value) b. Will barkeruplcy costs affect Tiks value? c. If The vere unlevered, what woild its expectod teturn on equily be? a. The value of the firmis equity lodiay is s (Round to the noarest dollar) 15. ind to the nentest dollar? Pourd lo wodncinalpaces) b. Wat bahenger costs alfoct The vatie? (Round to the nearest dollar.)