No-Toxic-Toys currently has $250,000 of equity and is planning an $100,000 expansion to meet increasing demand for its product. The company currently earns $37,500 in net income, and the expansion will yield $18,750 in additional income before any interest expense The company has three options: (1) do not expand, (2) expand and issue $100,000 in debt that requires payments of 10 % annual interest, or (3) expand and raise $100,000 from equity financing. For each option, compute (a) net income and (b) return on equity (Net Income Equity). Ignore any income tax efffects. (Round "Return on equity" to 1 decimal place.) 2 Don't Expand $ 37,500 Debt Financing Equity Financing Income before interest expense 0 Interest expense Net income Equity Return on equity % %