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Green Foods currently has $ 2 0 0 , 0 0 0 of equity and is planning an $ 8 0 , 0 0 0
Green Foods currently has $ of equity and is planning an $ expansion to meet increasing demand for its product. The company currently earns $ in net income, and the expansion will yield $ in additional income before any interest expense.
The company has three options: do not expand, expand and issue $ in debt that requires payments of annual interest, or expand and raise $ from equity financing. For each option, compute a net income and b return on equity Net Income Equity Ignore any income tax effects.
Note: Round "Return on equity" to decimal place.
table Don't Expand, Debt Financing, Equity FinancingIncome before interest expense,$Interest expense,,,,,,,Net income,$
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