Snow and Skates Ltd Is Planning a $500,000 Expansion

Snow and Skates Ltd is planning a $500,000 expansion. The firm has $1,000,000 in equity. Which of the following options would generate the largest return on equity?

A) Plan B-raise $500,000 from issuing shares.
B) Both Plan A-no expansion, and Plan B-raise $500,000 from issuing shares, have the same result.
C) Both Plan A-no expansion, and Plan C-issue $500,000 worth of 8% bonds, have the same result.
D) Plan A-no expansion.
E) Plan C-issue $500,000 worth of 8% bonds.