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( i ) Help Save & Exi Green Foods currently has $ 2 0 0 , 0 0 0 of equity and is planning an

(i)
Help
Save & Exi
Green Foods currently has $200,000 of equity and is planning an $80,000 expansion to meet increasing demand for its product. The company currently earns $50,000 in net income, and the expansion will yield $25,000 in additional income before any interest expense.
The company has three options: (1) do not expand, (2) expand and issue $80,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $80,000 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.
\table[[,1 Don't Expand,2 Debt Financing,3 Equity Financing],[Income before interest expense,,,],[Interest expense,a,,],[Net income,,,4],[Equity,,,],[Return on equity,%,%,%
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