As you make the case consider the following questions/issues: 1) how much business risk does Tonka face? 2) How much potential value, if any can Tonka create for shareholders at each of the proposed levels of debt? How would leveraging up touch the firm's taxes? 3) How much financial risk does Tonka face at each of the proposed levels of debt in case Exhibit 12) How would the capital markets respond to a decision by the company to increase the use of debt in their capital structure? 4) What target capital construction would you recommend? What argument (s) would you advance to encourage the firm to adopt your recommendations?