Chapter 10 Reporting and Analyzing Long-Term Lisbilities No-Toxic-Toys currently has $200,000 of equity and is planning an $80,000 demand for its product. The company currently earns $50,000 in net income, $25,000 in additional income before any interest expense. The company h pand 2) expand and issue $80,000 in debt that requires 8% annual interest, or (3) expand and raise $80,000 from equity financing. expansion to meet increasing and the expansion will yield as three options: (1) do not ex- Required For each of the three options, compute (a) net income and (b) return on equity (Net income/Equity). Round return on equity to one decimal. Ignore any income tax effects. Round dollar amounts to the nearest whole dollar Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years