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For Industry f , Frenza is planning a $ 3 3 6 , 0 0 0 expansion to launch a new product line. Frenza currently

For Industry f, Frenza is planning a $336,000 expansion to launch a new product line. Frenza currently earns $210,000 in net income, and the new product line will yield $105,000 in additional income before any interest expense. Frenza has three options: (1) do not expand, (2) expand and issue $336,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $336,000 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.)
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