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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 $175,000

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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 $175,000 in net income, and the expansion will yield $87.500 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() net income and (b) return on equity (Net Income - Equity). Ignore any income tax effects (Round "Return on equity" to 1 decimal place.) 1 Don't Expand 2 Debt Financing 3 Equity Financing Income before interest expense Interest expose Net income | Equity Return on equity

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