Chapter 10 C Saved 1 No-Toxic-Toys currently has $300,000 of equity and is planning an $120,000 expansion to meet increasing demand for its product. The company currently earns $75,000 in net income, and the expansion will yield $37,500 in additional income before any interest expense. 14.28 points The company has three options: (1) do not expand, (2) expand and issue $120,000 in debt that requires payments of 14% 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). Ignore any income tax effects. (Round "Return on equity" to 1 decimal place.) eBook 3 Don't Expand Debt Financing Equity Financing Income before interest expense Print Interest expense Net income Equity References Return on equity % % %