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No-Toxic-Toys currently has $450,000 of equity and is planning an $180,000 expansion to meet increasing demand for its product. The company currently earns $90,000 in

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No-Toxic-Toys currently has $450,000 of equity and is planning an $180,000 expansion to meet increasing demand for its product. The company currently earns $90,000 in net income, and the expansion will yield $45,000 in additional income before any interest expense. The company has three options: (1) do not expand. (2) expand and iss Interest, or (3) expand and raise $180,000 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 Income before interest expense Interest expense Net Income Equity Return on equity

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