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A company currently has $259,000 of equity and is planning a $109,000 expansion. The company currently earns $77,700 in net income, and the expansion will

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A company currently has $259,000 of equity and is planning a $109,000 expansion. The company currently earns $77,700 in net income, and the expansion will yleld $44,000 in additional income before any interest expense. The company is considering three separate options: (1) do not expand, (2) expand and issue $109,000 in debt that requires payments of 10% annual interest, or (3) expand and raise $109,000 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

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