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 $62,500 in net income, and the expansion will yield $31,250 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 11% 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 effects. (Round "Return on equity to 1 decimal place.) Don't Expand Debt Financing Equity Financing - 0 Income before interest expense Interest expense Not income Equity Return on equity $ $ 37,500 $ 250,000 15.01% s 46.250 $ 250,000 18.5% 0 56.250 350,000 16.11% $