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Green Foods cutrently has $400,000 of equity and is planning an $160,000 expansion to meet increasing demand for its product. The company currenthy earne $140,000

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Green Foods cutrently has $400,000 of equity and is planning an $160,000 expansion to meet increasing demand for its product. The company currenthy earne $140,000 in net income, and the expansion wil yield $70,000 in additional income before any interest. expensie. The company has three opsions: (1) do not expand, (2) expand and issue $160,000 in debt that requires payments of 9% anhual interest, of (3) expand and raise $160,000 from equify financing. For each option, compute (b) net income and (b) return on equaly (Net income + Equity. Ignote any income tox effects. Note: Round "Return on equity" to 1 decimal place

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