Exercise 10-1 (Algo) Debt versus equity financing LO A1 Green Foods currenty has $300,000 of equity and is planning an $120,000 expansion to meet increasing demand for its product. The company currenty earns $105,000 in net income, and the expansion will ylold $52.500 in additional income before any interest experse. The company has three options: (1) do not expand, (2) expand and issue $120,000 in debt that requires payments of 15% annusi interest, or (3) expand and raise \$120,000 from equity financing. For each option, compute (a) net income and (b) roturn on equily (Net Income + Equity). Ignore any income tax effects. Note: Pound "Return on equity" to 1 decimal place