Green Foods currently has $550,000 of equity and is planning an $220,000 expansion to meet increasing demand for its product. The company currently earns $110,000 in net income, and the expansion will yield $55,000 in additional income before any interest expense. The company has three options: (1) do not expand, (2) expand and issue $220,000 in debt that requires payments of 13% annual interest, or (3) expand and raise $220,000 from equity financing. For each option, compute (a) net income and (b) return on equity (Net Income Equity). Ignore any income tax effects. (Round "Return on equity" to 1 decimal place.) 3 Equity Financing Income before interest expense Interest expense Net income Answer is not complete. 1 Don't Expand 2 Debt Financing $110,000 $ 165,000 0 28,600 $110,000 $ $ 550,000 550,000 % % 30 $ 770.000 Equity Return on equity %