(20 pts) 5. Bennett Corporation is considering whether to pursue an aggressive or conservative current asset policy, as well as an aggressive or conservative financing policy. The following information is available: Annual sales are $20,000,000. Fixed assets are $10,000,000. The debt ratio is 40 percent. EBIT is $2,000,000. Tax rate is 25 percent. With an aggressive policy, current assets will be 30 percent of sal with a conservative policy, current assets will be 70 percent of sales. With an aggressive financing policy, short-term debt will be 60 percent of the total debt; with a conservative financing policy, short-term debt will be 20 percent of the total debt. Interest rate for short-term debt is 6 percent. Interest rate for long-term debt is 10 percent. Required: a) Determine the return on equity for the aggressive approach and for the conservative approach. b) Discuss which approach you would choose