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Green Foods currently has $ 2 5 0 , 0 0 0 of equity and is planning an $ 1 0 0 , 0 0

Green Foods currently has $250,000 of equity and is planning an $100,000 expansion to meet increasing demand for its product. The company currently earns $87,500 in net income, and the expansion will yield $43,750 in additional income before any interest expense.
The company has three options: (1) do not expand, (2) expand and issue $100,000 in debt that requires payments of 15% annual interest, or (3) expand and raise $100,000 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 1 decimal place.
\table[[,1 Don't Expand,2 Debt Financing,3 Equity Financing],[Income before interest expense,$87,500,,2,,],[Interest expense,0,,,:.,],[Net income,$87,500,,,5,],[Equity,$250,000,,,,],[Return on equity,,%,%,,%
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