A company currently has $$270,000$ of equity and is planning a $$120,000$ expansion. The company currently earns $$81,000$ in net

income, and the expansion will yield $$55,000$ in additional income before any interest expense.

The company is considering three separate options; $(1)$ do not expand, $(2)$ expand and issue $$120,000$ in debt that requires payments

of $15\%$ annual interest, or $(3)$ expand and raise $$120,000$ from equity financing. For each option compute $($a$)$ net income and $($b$)$ return

on equity $($Net income $$ Equity$).$

Note: Amounts to be subtracted should be indicated with a minus sign. Round "Return on equity" to $1$ decimal place.