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Req $1$ and $2$

For Industry I, Frenza is planning a $$432,000$ expansion to launch a new product line. Frenza currently earns $$270,000$ in net income, and the new product line will yield $$135,000$ in additional income before any interest expense. Frenza has three options: $(1)$ do not expand, $(2)$ expand and issue $$432,000$ in debt that requires payments of $8\%$ annual interest, or $(3)$ expand and raise $$432,000$ from equity financing. For each option $1,2,$ and $3,$ compute $($a$)$ net income and $($b$)$ return on equity $($Net income $$ Equity$).$ Ignore any income tax effects. $($Round "Return on equity" to $1$ decimal place.$)$

Important! Be sure to click the correct Industry at the top of the dashboard.

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$\backslash$table$[[\backslash$table$[[$Income before interest expense$]],\backslash$table$[[$Industry$],[$I$]],1,2,3],[$Don$\text{'}$t Expand,Debt Financing,$\backslash$table$[[$Equity$],[$Financing$]]],[$$$270,000$vv$,,,,,,],[$Interest expense,I,,,,,,,$],[$Net income,I,,,,$370,440,,$$$405,000,],[$Equity$,$I,,,,,,,$],[$Return on equity,I,$25\mathrm{.}0,\%,,34\mathrm{.}3$vv$,\%,33\mathrm{.}0\backslash$times $,\%]]$