Green Foods currently has $$400,000$ of equity and is planning an $$160,000$ expansion to meet increasing demand for its product. The company currently earns $$100,000$ in net income, and the expansion will yield $$50,000$ in additional income before any interest expense.

The company has three options: $(1)$ do not expand, $(2)$ expand and issue $$160,000$ in debt that requires payments of $8\%$ annual interest, or $(3)$ expand and raise $$160,000$ 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.

$\backslash$table$[[,1$ Don't Expand,$2$ Debt Financing,$3$ Equity Financing$],[$Income before interest expense,,,,,,,,$],[$Interest expense,,,,$12,800,,,,],[$Net income,$$100,000,,$$$,137,200,,$$$,150,000,],[$Equity$,$$$400,000,,$$$,400,000,,,,],[$Return on equity,$25\mathrm{.}0,\%,,34\mathrm{.}3,\%,,26\mathrm{.}8,\%$