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No-Toxic-Toys currently has $300,000 of equity and is planning an $120,000 expansion to meet increasing demand for its product. The company currently earns $105,000 in

No-Toxic-Toys currently has $300,000 of equity and is planning an $120,000 expansion to meet increasing demand for its product. The company currently earns $105,000 in net income, and the expansion will yield $52,500 in additional income before any interest expense. The company has three options: (1) do not expand, (2) expand and issue $120,000 in debt that requires payments of 15% annual interest, or (3) expand and raise $120,000 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.)Ta

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Table is attached, please help.

Answer is not complete. 2 Debt Financing 3 Equity Financing 1 Don't Expand $ 105,000 0 0 Income before interest expense Interest expense Net income Equity Return on equity % %

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