Green Foods currently has $$500,000$ of equity and is planning an $$200,000$ expansion to meet increasing demand for its product. The company currently earns $$125,000$ in net income, and the expansion will yield $$62,500$ in additional income before any interest expense.

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 $($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.

$1$ Don't Expand $2$ Debt Financing $3$ Equity Financing