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Accounting

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Req 1 and 2
Frenza is planning an $160,000 expansion to launch a new product line. Frenza currently earns $100,000 in net income, and
the new product line will yield $50,000 in additional income before any interest expense. Frenza has three options: (1) do not
expand, (2) expand and issue $160,000 in debt that requires payments of 8% annual interest, or (3) expand and raise
$160,000 from equity financing. For each option 1,2, and 3, 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.)
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