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(16 pts) 9. Robinson Enterprises is considering whether to pursue an aggressive or conservative current asset investment policy. The firm's annual sales are $4,000,000; its

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(16 pts) 9. Robinson Enterprises is considering whether to pursue an aggressive or conservative current asset investment policy. The firm's annual sales are $4,000,000; its fixed assets are $2,000,000; debt and equity are each 50% of total assets. EBIT is $400,000, the interest rate on the firm's debt is 10%, and the firm's tax rate is 30%. With an aggressive policy, current assets will be 20% of sales. Under a conservative policy, current assets will be 60% of sales. Show computations. Required: a) Determine the return on equity for the aggressive policy and the conservative policy. b) Explain which policy you would recommend

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