Check my work No-Toxic-Toys currently has $500,000 of equity and is planning an $200,000 expansion to meet increasing demand for its product. The company currently earns $175,000 in net income, and the expansion will yield $87,500 in additional income before any interest expense 071 points The company has three options: (1) do not expand, (2) expand and issue $200,000 in debt that requires payments of 9% annual Interest, or (3) expand and raise $200,000 from equity financing. For each option, compute(o) net income and (b) return on equity (Net Income Equity). Ignore any income tax effects. (Round "Return on equity to 1 decimal place.) References Equity Financing 202.500 Income before interest expense Interest expense Net income Don't Expand Debt Financing $175.000 $ 262.500l 18.000 $ 175.000 S 500 000 $ 500.000 $ 262500 $ 700.000 Equity Return on equity